Morgan Stanley's research report pointed out that due to the management not adjusting the operational guidance as expected during the investor communication event recently held by Sunny Optical (02382.HK), some investors may feel disappointed. Considering that the recovery of demand for smart phones has entered the right track, it is expected that the market will mainly focus on the extent of profit margin recovery in the future.

Sunny Optical expects the global shipment of smart phones to increase by 3.5% to 1.169 billion units this year, which is 1.7% higher than the original forecast, and the shipment of foldable smart phones is expected to increase by 39% annually. Morgan Stanley believes that under the trend of industry specification upgrade, Sunny Optical will focus on larger pixels, hybrid large apertures, periscope lenses, smaller lenses, and high-end OIS, thereby capturing growth opportunities.

In terms of onboard cameras, Morgan Stanley reiterated that Sunny Optical is still the industry leader with significant growth advantages, and expects its market share to continue to increase; while lidar, intelligent car lights and heads-up displays (HUD) may become new growth drivers. The company is considered bullish on Sunny Optical's maintenance of its leading position in the industry, with a 'shareholding' rating and a target price of 57 yuan.