HK Stock Market Move | Shunyu Optics (02382) rises by more than 6% again. Citigroup believes that the company will benefit from the increase in market penetration of ADAS in the overall automotive market.

Shunyu Optical (02382) rose more than 6% again, with a 6.24% increase as of press time, reaching HK$90.25, with a turnover of HK$249 million. On the news front, Citigroup released a research report stating that BYD Company Limited officially announced the launch of the advanced intelligent driving system "Eye of God" at the Smart Strategy Conference, which has a positive impact on its main supply chain. Citigroup believes that BYD ELECTRONIC is the main beneficiary, followed by Will Semiconductor and Shunyu Optical. Citigroup believes that the advanced driver assistance system (ADAS) plus autonomous driving has become a key investment theme this year. With the penetration of ADAS into vehicles priced below 10,000 RMB, the revenue of BYD ELECTRONIC's automotive business in the next two years is expected to increase by 3% and 5% from the original forecast. However, the recent rise in stock price may have already reflected most of the expectations. Will Semiconductor and Shunyu Optical will also benefit from the increase in the overall penetration rate of ADAS in the automotive market, as both companies derive about 30% to 40% of their profits from this area.