Daiwa: Raises target price for SUNNY OPTICAL (02382) to HKD 73, reiterates "Outperform" rating.

Daiwa has released a research report stating that it has raised the target price for Sunny Optical (02382) from HKD 72 to HKD 73, reaffirming its Outperform rating; it has also increased its earnings forecast for 2026 to 2027 by 21% to 27%. The firm indicated that the upgrade in earnings forecast reflects the revenue growth and the effectiveness of cost control in the first half of the year; its earnings per share forecast for Sunny Optical in 2026 to 2027 is 2% to 6% higher than the market, mainly due to a more optimistic outlook on revenue growth. The firm noted that Sunny Optical's revenue grew by 11% in the first half of the year, driven by the automotive, XR, and IoT businesses, benefiting from robust growth in overseas major client business, with management expecting full-year revenue to remain flat year-on-year. Regarding the XR business, management anticipates that revenue growth will accelerate in 2027.