Goldman Sachs: Raises Sunway Optoelectronics Technology's target price to HK$91.1, Raises earnings forecast for 2025-2027.

Goldman Sachs released a research report stating that Shunyu Optical Technology's management expressed a positive outlook on the company's profit improvement at the mid-term performance meeting, expecting to be driven by the trend of upgrading specifications of smartphone lenses. The bank predicts that with product upgrades to periscope cameras, ultra-thin solutions, AI imaging support, the company's gross profit margin will rebound to 19.7% and 20.2% this year and next year, compared to 14.5% and 18.3% in the past two years, but still below the 22% to 23% level of 2020 to 2021. The bank has raised its profit forecast for 2025 to 2027 by 10%, 2%, and 2%, and gross margin forecast by 0.5, 0.2, and 0.1 percentage points, with revenue forecast remaining unchanged. The target price has been raised from HK$89 to HK$91.1, and the "Neutral" rating is maintained.