Goldman Sachs stated that it is believed that this growth trend means that the company will further seize the market share. The volume of shipments of Sunny Mobile Lens has reached 38% of the full-year expected cap for the year 2018 to present, which is better than 30% and 35% in 2016 and 2017. We believe that the above data supports its optimism for Sunny, and reiterates that the stock is on the 'Confirm Buy' list and that the target price has risen from HK$168 to HK$205.
Goldman Sachs believes that as the trend of product upgrades to multi-lens and 3D sensing lenses continues, the average selling price and gross profit margin of the company's lens modules will further expand; supply of high-end camera lens modules will be tight, leading the technology leader; thanks to the technology of Dali Optoelectronics As the gap narrows, the market share of Sunny City will continue to increase.
UBS also raised the 12-month target price of Sunny Optical from HK$126.5 to HK$151.5. UBS is mainly optimistic that the 3D module will become a new driving force for growth. The new target price is equivalent to 28 times of 2018 P/E.
UBS said that the market is concerned about the weak performance of the Chinese smartphone market in the fourth quarter of 2017, but UBS expects that the shipping data of Haoyu from March 2017 is expected to return after inventory liquidation, and It is a positive catalyst, but ultimately based on the final demand is uncertain, especially in the high-end modules, the lack of upgrading of new features in the second half of 2018, is expected to return the risk return ratio in 2718 at 27 times the price-earnings ratio.
Sunny Optical recently announced a strategic partnership with Corephotonics, the world's leading licensee of dual camera technology. Both companies will integrate dual camera modules, imaging processing algorithms and computational vision software based on their dual camera technology to provide the market with a wide range of advanced imaging solutions. , Bringing superior imaging quality and user experience.
The strategic licensing agreement also includes a variety of folded dual camera solutions. Under this license agreement, Sunny Optical has provided millions of smart phone OEMs such as Xiaomi, OPPO, and many more based on the intellectual property (IP) of Corephotonics. Set of dual camera solutions.