Sunny Optical expects significant profit surge in 2024

** Sunny Optical Technology (Group) Company Limited (HKEX:2382) anticipates a significant surge in profits attributable to owners for the year ended December 31, 2024. The company projects profits to range from RMB2,638.6 million to RMB2,748.5 million, representing a 140% to 150% increase compared to the RMB1,099.4 million reported for 2023. This positive outlook is attributed to the recovery of the global smartphone market, which saw shipment growth of 6-7% year-on-year. This led to a 13.1% YoY increase in Sunny Optical's handset lens set shipments. Simultaneously, improvements in product mix boosted average selling prices and gross profit margins for both handset lens sets and camera modules. The company has also benefited from robust demand in the new energy vehicle (NEV) sector. This drove up adoption rates of vehicle lens sets, and Sunny Optical maintained its market-leading position with a 12.7% YoY increase in vehicle lens set shipments. January 2025 shipment data for other optical components and optoelectronic products show YoY growth except in the handset camera module sector which dropped 40.9% due to high comparative bases and the timing of the Lunar New Year. The company is in the process of finalizing its consolidated financial results, expected to be announced before the end of March 2025.