Daiwa has raised its price target for SUNNY OPTICAL (02382) from HK$72 to HK$73, while reaffirming an "Outperform" rating, according to a recent research report. The firm has also increased its earnings forecasts for 2026 and 2027 by 21% to 27%.
The upgrade reflects the company's revenue growth and cost-control execution in the first half of the year, Daiwa noted. The broker's earnings per share estimates for SUNNY OPTICAL for 2026-2027 are 2% to 6% higher than the market consensus, driven by a more optimistic outlook on revenue growth.
The company posted an 11% revenue increase in the first half, supported by its automotive, XR, and general IoT segments, benefiting from robust growth among major overseas clients. Management expects full-year revenue to remain flat year-on-year. For the XR business, management anticipates accelerated revenue growth starting in 2027.
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