Shunyu (02382.HK) mobile phone lens shipments increased 15% year-on-year to 0.124 billion units in August, up 54% year-on-year from Dachikuang; Shunyu mobile camera modules fell 25% year-on-year to 40 million units, compared with Qu Titanium Technology (01478.HK) rose 1% year-on-year; Sunyu automotive mirrors Headcount rose 4% year-on-year to 8 million units, up 9% year-on-year in July.

Shunyu shipped 0.874 billion, 70 million and 0.373 billion units of mobile phone lenses, automotive lenses and mobile camera modules in the first eight months, representing 68%, 69% and 66% of the company's forecasts for the year, roughly in line with expectations.

The bank lowered Shunyu's profit forecast for the next two years by 1% and revenue forecasts by 1% and 2%, mainly due to a drop in camera module shipments. The bank also lowered its 2025 forecast for the company's market profit margin from 23.9 times to 23.3 times and its target price was lowered from 65.8 to 63.5 dollars. The bank remains wary of intense competition in the camera market, with the company maintaining a “neutral” rating for the company in the 2024 to 2026 gross margin of 17% to 18%.