HK Stock Market Move | Sun Yu Optics (02382) rose more than 3%, with a 13% year-on-year increase in smartphone camera shipments in December. The mobile optical product structure has been optimized.

Shun Yu Optics (02382) rose more than 3%, up 3.28% to HK$62.9 as of press time, with a turnover of HK$176 million. CICC released a research report stating that the company's shipments of smartphone lenses/smartphone camera modules in 2024 are expected to be 1.324 billion pieces/534 million pieces, representing a year-on-year increase of 13%/a year-on-year decrease of 6% respectively. Due to the significant specifications upgrade of smartphone cameras in 2024, including more 7P lenses shipped and more high-pixel, periscope, OIS modules shipped, as well as the company's continuous focus on high-end projects, CICC believes that the ASP of the company's mobile optical products in 2H24 is expected to be higher than that in 1H24, with a double-digit year-on-year growth expected for the full year. Similarly, the gross profit margin in 2H24 is also expected to continue to increase compared to 1H24. Looking forward to 2025, the mobile digital subsidy policy is expected to be implemented on January 8, which CICC believes may stimulate consumer demand for upgrading their phones. On the other hand, optics is expected to remain the main entry point for micro-innovations in smartphones, including glass-plastic hybrid lenses, periscope module sinking, pixel upgrades, etc., and the company's product structure is expected to be further optimized.