BUZZ-China's Sunny Optical hits near 7-year low on weak earnings forecast

Reuters01-31

** Shares of Chinese handset camera modules producer and supplier Sunny Optical Technology Group Co Ltd drop 9.3% to HK$49, their lowest since February 2017

** Stock on track for biggest one-day pct fall since July 20, if current losses hold; down for a fourth straight session

** Stock biggest pct loser in the Hang Seng Index , Hang Seng Tech Index , Hang Seng Commerce & Industry Index and Hang Seng China Enterprises Index

** Co estimates its 2023 net profit to be in 1.08 bln-1.20 bln yuan ($150.5 mln-$167.2 mln) range, down 50%-55% YoY, amid a slow recovery of the Chinese economy, weak demand from global smartphone market, intense competition which has hit gross profit margins

** Citi says Sunny Optical's 2H23 net profit missed forecast but marks 2023 the bottom

** Reiterates "buy" rating on intact camera spec upgrade trend

** The Hang Seng Commerce & Industry Index falls 1.6%, the Hang Seng Tech Index drops 1.9%

** The Hang Seng Index down 1.3%, the Hang Seng China Enterprises Index down 1.4%

** Stock down 30.4% YTD

($1 = 7.1780 Chinese yuan)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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