Citi has issued a research report indicating that management at SUNNY OPTICAL (02382) has secured substantial AR product orders from a leading customer, which are anticipated to contribute meaningfully starting in 2027. Consequently, the bank has raised its price target from HK$88 to HK$94, reaffirming a "Buy" rating.
According to Citi, excluding the impact of the share exchange transaction, SUNNY OPTICAL's management expects full-year total revenue and net profit to each grow at least 7% year-over-year, with no downward revision to guidance. The company projects that full-year handset business revenue will remain flat year-over-year, while XR business revenue is set to exceed RMB 2 billion in 2026 with annual growth. Additionally, the broader IoT business revenue is expected to increase by approximately 50%.
The company will focus on securing orders for high-end projects from Korean smartphone clients, as part of its strategic growth initiatives.
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