On June 21st, GuoLianHui reported that China Merchants Securities issued a report stating that Sunway Optoelectronics (2382.HK) recently held an investor day event to introduce technology trends and company development opportunities, and discussed the potential increment of intelligent hardware under the AI trend. The report believes that the company's smartphone business is expected to benefit from the recovery of demand for smartphones and the trend of optical image innovation of high-end Android models in 2024, with lens and camera module achieving rising sales volume, ASP, and gross margin; at the same time, the market share of North American and South Korean customers is expected to continue to increase, opening up growth space for the next three years. The advantage of the integrated layout of car-mounted business is obvious, as intelligent driving drives the growth of car-mounted lenses, camera modules, lidar, and display business. The company lays out the XR business prospectively and continues to increase investment, especially in the AR field, with the potential to achieve long-term growth with the development of the XR market and the launch of new products by major customers. China Merchants Securities expects Sunway to have a total revenue of HKD 37/41.9/47.4 billion and a net profit of HKD 1.9/2.4/3 billion from 2024 to 2026, with earnings per share of HKD 1.84/2.32/2.83, and predicted a PE ratio of 25.7/20.4/16.7 times, maintaining a "shareholding" rating.