Glonghui, March 22 | Goldman Sachs published a research report stating that after Shunyu released the results, management gave weak guidance to its business. The bank adjusted its forecast accordingly and reaffirmed its “neutral” rating. It also indicated that although the company's shipments have been stable in the past few months, competition in the lens and camera module market is still fierce, which may limit long-term growth potential and gross profit recovery, so the target price was lowered from HK$69 to HK$65. The report cites management's guidance. Mobile lens shipments are expected to increase by 5% year-on-year this year, mainly driven by a recovery in high-end market demand; gross margin is expected to gradually improve to 20%, compared to 15% to 20% in the second half of last year. The bank lowered the Group's earnings estimates for this year and next by 6% and 9% respectively, mainly reflecting a decline in revenue and gross profit. The bank lowered its revenue forecast for 2024 and 25 by 2% and 5%, respectively, and its gross profit forecast for the period of decline by 1 and 0.7 percentage points. Also, due to the company's high cash balance and expected higher interest income, the net profit reduction was small, 6% and 9%, respectively.