UBS Group released a research report stating that Sunny Optical Technology (02382.HK) is more optimistic about global smart phone shipments, which is a sign of stable demand. As for the gradual elimination of market price competition, it will also help Sunny Optical Technology improve its profit margin performance.
Regarding the smart phone-related business, Sunny Optical Technology currently expects global smart phone shipments to reach 1.17 billion units this year, with a year-on-year increase of 3.5%; mainland China's smart phone shipments reached 276 million units, with a year-on-year increase of 0.4%; foldable phone sales will increase by 38.8% year-on-year.
Regarding the automobile-related business, Sunny Optical Technology's automobile lens shipments increased by 15.1% year-on-year, higher than the global automobile lens market's growth of 12.6%, and has a 31% market share in the global leading position. As for the company's electric vehicle lens shipment market share reached 33%, and has established business relationships with major electric vehicle brands.
UBS Group expects that Sunny Optical Technology's profit margin will increase by 113% YoY in the 2024 fiscal year. Considering that the company's profit margin will record a significant improvement, the bank has set Sunny Optical Technology's target price at 77 yuan and reiterated its "buy" rating. (js / w)
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