Shunyu Optics (02382) expects a moderate recovery in global smart phone shipments in 2024 (+3.5% YoY), and is bullish on growth driven by improvements in the company's product and customer portfolio.
According to the WiseNews app, Goldman Sachs released a research report maintaining a "neutral" rating on Shunyu Optics (02382) with a target price of HKD 65. The company held its 2024 Investor Day, which mainly discussed the recovery of demand for smart phone lenses, upgrades and pricing pressures for automotive lenses, and the impact of artificial intelligence on the optical industry.
Overall, the bank pointed out that Shunyu Optics expects a moderate recovery in global smart phone shipments in 2024 (+3.5% YoY), and is bullish on growth driven by improvements in the company's product and customer portfolio. The specs for automotive cameras continue to upgrade, and the demand is continuously growing. The company is working to reduce costs under the pricing pressure from automotive original equipment manufacturers. Artificial intelligence is expanding the potential market for camera in edge intelligence devices and robots. Management believes that, as hardware features cannot be completely replaced by software or AI, camera specs will still be critical.