Sunny Optical Technology (02382.HK) surged in the afternoon, with the latest price reaching 70.8 yuan, up 4.5%. Bank of China International released a report stating that Sunny Optical Technology is expected to benefit from the recovery of the domestic OEM-led smartphone camera upgrade cycle, an increase in market share from USA customers, and intensified competition in domestic NOA (Navigate on Autopilot) systems.

In terms of Extended Reality (XR), the institution expects that starting from mid-2025, when investors see more AR glasses flooding the market, it could become a key revaluation driver. The institution has decided to increase its earnings per share forecast for Sunny Optical Technology for 2024 to 2026 by 4% to 6%, raising the Target Price from 69 yuan to 77 yuan, while maintaining a 'Buy' rating.

From the recent roadshow participated by the institution, investors are generally focused on the domestic fiscal stimulus in the Consumer Electronics sector, camera upgrades, and the growth of market share from USA customers, including BYD (01211.HK) accelerating autonomous driving through automobile camera upgrades, especially in XR. Sunny Optical Technology is developing AR smart glasses, and the company is expected to be on the road to recovery.

Bank of China International estimates that starting in 2026, the diversity of edge AI devices will converge into AI glasses for AR, allowing the company to initiate a new product cycle in the fields of cameras and waveguide optics, with the market potentially reassessing its value by mid-2025.