Stock Idea Betting on the smart car revolution and smartpho | FSMOne SG - Research Highlights

Stock Idea

Betting on the smart car revolution and smartphone camera upgrade cycle? Buy Sunny Optical

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• Since the start of the crackdown on the Chinese technology sector, Sunny Optical is among the rare few that has been holding up well.

• Management remains optimistic about the multi-camera upgrade cycle in the longer term, and believe it is likely to resume by 2022 or 2023. 

• Sunny Optical will also benefit from strong growth in vehicle-related shipments in the coming years as more ADAS solutions are commercialised and adopted by car manufacturers.

• Given the high-margin and high-growth nature of the vehicle business, we have decided to upgrade our fair PE multiple to 25X (previously 23X).

• We continue to hold a positive view on Sunny Optical and we believe there is still ample room for the company to grow.

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: Sunny Optical (HKEX:2382)