2026 Investors Day: mgmt. emphasizes high-end projects and datacom

Research evidence excerpt

2026 Investors Day: mgmt. emphasizes high-end projects and datacom

iQprofile SM Sunny Optical

Key Income Statement Data (Dec) 2024A 2025A 2026E 2027E 2028E Company Sector

(CNY Millions) IT Hardware

Sales 38,294 43,229 44,930 49,185 55,222

Gross Profit 7,006 8,516 8,830 10,165 11,565

Sell General & Admin Expense (1,839) (1,763) (1,851) (2,044) (2,295) Company Description Operating Profit 2,243 3,494 3,616 4,542 5,252

Net Interest & Other Income 782 1,750 800 800 800 Sunny Optical, founded in 1984, is a leading optical supplier

Associates 118 172 0 0 0 for smartphone, auto, AR/VR, robot, surveillance,

Pretax Income 3,144 5,416 4,416 5,342 6,052 microscope and industrial/medical-related products. The

Tax (expense) / Benefit (367) (609) (512) (619) (701) company has a dominant position at Android smartphone

Net Income (Adjusted) 2,699 4,639 3,844 4,663 5,291

with a diversified customer mix, and is the global No.1

Average Fully Diluted Shares Outstanding 1,089 1,092 1,092 1,092 1,092

vehicle lens supplier. It has also expanded business into

Key Cash Flow Statement Data

Apple and started shipment to iPhone/iPad. The company

Net Income 2,855 4,975 3,964 4,783 5,411

has production sites in China/India/Vietnam and its R&D Depreciation & Amortization 2,157 2,308 2,326 2,152 2,197

Change in Working Capital (1,589) (1,377) (1,512) (42) 250 centers are located in China/South Korea/US.

Deferred Taxation Charge NA NA NA NA NA

Other Adjustments, Net 33 174 (120) (120) (120)

Cash Flow from Operations 3,455 6,080 4,658 6,773 7,738 Investment Rationale

Capital Expenditure (1,455) (2,931) (2,500) (2,500) (2,500) We have a Neutral rating on Sunny Optical on balanced risk-

(Acquisition) / Disposal of Investments (8,426) 0 0 0 0

reward. We see smartphone business likely to be negatively