Citi released a research report stating that the “buy” rating for Shunyu Optics (02382) has a target price of HK$63.5, corresponding to about 30 times the projected price-earnings ratio in 2024. This mainly reflects the recovery in profits brought about by the upgrade of periscope lenses, improvements in mobile phone lens gross margin, and further growth in the automotive/XR business.
According to the report, Shunxu Co., Ltd., the largest shareholder holding 35.48% of the company's shares, signed an equity option deal with UBS Group, involving 44.57 million shares, accounting for about 4% of tradable shares. Shunwook did not announce the reason for the transaction. Citi predicts that it may be due to its own financing needs rather than a change in its shareholding position. It will wait for Sunyu Optics to make further announcements about the incident.