According to a research report released by Citi, the "buy" rating of Sunny Optical Technology (02382) is expected to rise 2 per cent year-on-year to 39 billion yuan in 2021, while net profit rose 9 per cent to 5.3 billion yuan, down 16 per cent from the original forecast, and the target price fell from HK $280 to HK $275, Zhitong Financial APP learned.

Citi expects global mobile phone shipments to fall 2 per cent year-on-year in 2022, which will affect the company, but believes car lenses and meta-cosmic parts will contribute more to about 20 per cent of revenue. The profit forecast for 2022-23 was adjusted by about 6 per cent, still more than 10 per cent higher than the market forecast, due to an increase in the contribution of on-board products. The target price of the company is reduced due to the adjustment of the classification plus total valuation method.

According to the report, it is believed that the recent correction in Shunyu's share price has generally reflected investors' concerns about 2021 performance and maintained a positive view on the company's 2022 outlook, driven by car products, Apple Inc lens market share and "meta-universe" factors.