Sunny Optical Shares Fall After Weak November Shipments

By Clarence Leong

Sunny Optical Technology Group Co.'s shares fell sharply Monday morning in Hong Kong, after the electronics company posted weak November shipments.

Zhejiang, China-based company's stock fell 12% to 94.60 Hong Kong dollars (US$12.15), taking year-to-date losses to 62%. Closing at the current level would mark its steepest one-day percentage decline since March 2020.

November shipments of handset camera modules and handset lens sets weakened 23% and 26%, respectively, from a year earlier mainly due to weak smartphone demand, Sunny Optical said late Friday.

Both products' shipments were lower than expected, and Sunny Optical could miss its 2022 shipment guidance for the segments by one to two percentage points, Nomura analysts Donnie Teng and Anne Lee said in a note. Sunny Optical had guided for handset camera modules to fall 20% and handset lens sets to decline 15%, according to Nomura.

A bright spot is its vehicle lens shipments, which rose 47% last month. The company attributed the rise to last year's low base, which was due to a component shortage in the auto supply chain. The analysts expect the company can beat its 2022 shipment guidance of a 10%-15% increase by four to five percentage points.

Nomura kept a buy rating and HK$101 target price on the stock.

Write to Clarence Leong at [e-mail]

(END) Dow Jones Newswires

12-11-22 2259ET