Goldman Sachs: maintain "neutral" rating on SUNNY OPTICAL (02382), target price cut to 63.5 Hong Kong dollars.

Goldman Sachs has released a research report stating that the profit forecast for SUNNY OPTICAL (02382) for the next two years has been reduced by 1% each, with revenue forecasts down by 1% and 2% respectively, mainly due to a decrease in the shipment of camera modules. The bank has also lowered the company's 2025 forecasted P/E ratio from 23.9 times to 23.3 times, and the target price from 65.8 Hong Kong dollars to 63.5 Hong Kong dollars. The bank remains cautious about the fierce competition in the camera market, forecasting the company's blended gross margin to remain stable at 17% to 18% for the years 2024 to 2026, and maintaining a "neutral" rating on the company. The report stated that in August, Sunny Optical's shipment of mobile phone lenses increased by 15% year-on-year to 124 million units, compared to a 54% increase in the same period for Largan Precision; Sunny Optical's shipment of mobile camera modules decreased by 25% year-on-year to 40 million units, compared to a 1% increase in the same period for Q TECH; and Sunny Optical's shipment of vehicle lenses increased by 4% year-on-year to 8 million units, compared to a 9% increase in July. As for Sunny Optical's shipment of mobile phone lenses, vehicle lenses, and mobile camera modules in the first eight months, they reached 874 million, 70 million, and 373 million units respectively, accounting for 68%, 69%, and 66% of the bank's full-year forecast for the company, which is roughly in line with expectations.