HK Stock Market Move | Shunyu Optics (02382) rose more than 4% in early trading, and mobile phone subsidies are expected to stimulate mobile phone sales. XR products may trigger a market reassessment in the middle of next year.

Shunyu Optics (02382) rose more than 4% in early trading, up 2.35% as of press time, to HK$63.2 with a turnover of HK$2.61 billion. On the news front, the National Development and Reform Commission and the Ministry of Finance issued a notice stating that subsidies for the purchase of new digital products such as smartphones are being implemented. For individual consumers purchasing three types of digital products including smartphones, tablets, smart watches, and wristbands, a subsidy of 15% of the product's sales price will be granted, with each consumer eligible for a subsidy of one product per category, with each subsidy not exceeding 500 yuan. UBS pointed out that the subsidies for mainland mobile phones are expected to stimulate the sales of mid-range phones, but most new iPhone models do not qualify. Citi International previously pointed out that Shunyu Optics is expected to benefit from the recovery of the domestic OEM-led upgrade cycle of smart phone cameras, increased market share of US clients, and intensified competition in NOA (Navigation under Autonomous Driving Mode) in the domestic market. Focus on extended reality (XR), the bank expects that starting from the middle of 2025, when investors see more AR glasses entering the market, it may become a key driving factor for repricing.