The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains the “neutral” rating of Shunyu Optics (02382), with a target price of HK$69. Although Sunyu's revenue and shipments both returned to positive quarterly growth, gross margin fell below expectations by 14.1% in the second half of last year, lower than 14.9% in the first half of 2023, reflecting intense competition in the mobile lens and camera module market.

The bank pointed out that Shunyu's net profit for the second half of last year was 663 million yuan, 6% lower than the median guideline, and 6% and 18% lower than the bank's and market forecasts, respectively. Shunyu's management believes that the pricing pressure for mobile phone lenses and camera modules comes from competition and a reduction in smartphone camera specifications. Due to the low base, the bank expects this year to be a year of recovery for Sunwoo. Demand in the smartphone market will improve, and camera specifications will also improve, especially for high-end products. However, the bank is still concerned that intense competition for lenses and camera modules will limit the company's long-term growth potential and gross margin recovery.