Zhitong Financial APP learned that Guosheng Securities issued a research report saying that it maintained Sunny Optical's (02382) "buy" rating and predicted revenue of 320.8 million 351.3 / 40.79 billion yuan in 2022-24 (compared with the same period last year). The net profit of homing mother was 30.4 million 45.8 / 6.26 billion yuan (compared with the same period of last year), and the target price was HK $140.40.In terms of industryThe mobile phone market is weak and the regulations are down.On the company sideRevenue retrogression and profitability decline, mobile phone lens, module shipments are also down from the same period last year, car lens and module growth is not as expected.

The main points of Guosheng Securities are as follows:

Optical parts segment: revenue increased slightly, mobile phone lens shipments and ASP decreased.

The 1H22 revenue of the optical parts division was 4.4 billion, an increase of 1.3% over the same period last year, mainly affected by the weak demand in the mobile phone market and the downgrading of lenses. Shipments of mobile phone lenses fell 9.1 per cent year-on-year to about 650 million, below the guidance of a positive 5 per cent growth rate for the whole year at the beginning of the year. Car lens shipments rose 0.8 per cent to 37.61 million from a year earlier, down from the previous annual growth guidance of 20 per cent, mainly due to a structural shortage of chips, and vehicle business growth was lower than expected. The gross profit margin of the optical parts segment fell to 35.5% from 42.9% in the same period last year, mainly due to a decline in the ASP of mobile phone lenses compared with the same period last year. Although the mobile phone market still faces some pressure in the second half of the year, with the gradual increase in the contribution of the company's new products and the increase in the proportion of overseas customers shipping in the peak season.The bank believes that its optical parts will have a certain degree of toughness in the second half of the year.

Optoelectronic products Division: the decline in mobile phone module shipments is a drag on the division income, and the vehicle module business development is smooth.

The 1H22 revenue of the optoelectronic products division was 12.37 billion, down 19.2% from the same period last year, mainly due to weak demand in the mobile phone market. Shipments of mobile camera modules fell by 20.1% to 290 million compared with the same period last year, and the growth rate of vehicle modules was lower than expected. The gross profit margin of the optoelectronic products division reached 11.6% in the first half of the year, down 3.2pct from the same period last year and 0.8pct from the previous year, mainly due to the higher gross margin base of the mobile camera module due to the better market pattern in the same period last year.

During the period, the company completed the research and development of a number of vehicle modules, and the continuous high-quality product delivery laid the foundation for the rapid expansion of the vehicle module business. in the first half of the year, the 3 million-pixel high-definition vehicle module achieved mass production; the 8 million-pixel environment-aware vehicle module added 3 mass production projects and 3 fixed-point projects. With the rapid growth of the industry, the vehicle module business can be expected in the future.

Lidar and VR pancake modules are in mass production, and AR/VR is expected to grow at a high speed throughout the year.

In the first half of the year, the company's AR/VR entered the volume stage, with revenue of 660 million, an increase of 11% over the same period last year, accounting for 3.9% of the revenue. During this period, the new generation of VR spatial positioning lens VR pancake module has achieved mass production. Shunyu is the main supplier of the major customer VR pancake and has a solid position.Guosheng Securities expects AR/VR products to grow by 50 per cent in 2022.

Risk Tips:The risk of epidemic situation, the risk of higher-than-expected changes in the economic environment, the risk of continued malaise in the mobile phone market, and the risk that the growth rate of the car market is not up to expectations.