Citi published a report stating that SUNNY OPTICAL issued a positive profit alert, expecting the midpoint of the net profit forecast for the second half of last year to reach 1.615 billion yuan, which roughly aligns with the bank's expectations. This is mainly due to the recovery of the Smart Phone market, which has led to an improved product mix, increased average selling prices, and improved sales volume; as well as the increase in ADAS applications and strong sales of Electric Vehicles driving robust VLS demand. Regarding the shipment volume in January of this year, the mobile lens modules and mobile lenses lagged due to the impact of the renminbi, while car lenses continued to improve due to a low base and increased demand from Electric Vehicle customers in China. Citi indicated that the recent rebound in the stock partially reflects SUNNY OPTICAL benefiting from national mobile phone subsidies, rising ADAS penetration rates, opportunities in AI smart glasses, and Machine Vision. Recent catalysts include the launch of new models (Huawei, Xiaomi, etc.) before MWC, and last year's second half performance, etc. The bank has set a Target Price of 77 Hong Kong dollars and a "Buy" rating.