|作者：||Kevin CHEN,Clint SU|
|摘要：||Report title:Sunny Optical (2382 HK) - April shipments beat; BUY on share price correction
Analyst:Kevin CHEN,Clint SU
■ Strong April handset shipments showing improving momentum, helped by market share gain and new product launch ■ Triple-camera the new standard for flagship handsets in 2019; Sunny Optical set to benefit as a leading solution provider ■ Recent shares decline a BUY opportunity ahead of 2H19 recovery April shipments momentum accelerating Sunny Optical announced better-than-expected April shipments, showing momentum accelerating for handset products. HLS grew 60% YoY (vs. +40% in 1Q19) and HCM rose 36% YoY (vs. +16% in 1Q19), helped by market share gain. VLS shipments were largely inline (+16% YoY). We find the handset shipment acceleration encouraging, and likely to boost investor confidence after the soft HCM volumes in 1Q19. Cumulative shipments are on track to meet/beat the company’s FY19 guidance (HLS: +25-30%, HCM: +20-25%). Key beneficiary of rising camera specification Triple-cameras were the new standard for new Android flagship handsets this year. We expect a total of 60mn triple-cam handsets by HOVX in 2019, with possible upside from increasing adoption by mid-end models. Periscope designs allow handset cameras to extend optical zoom to 5x and beyond. Despite limited adoption near term (~30mn in 2019), we view periscope as another opportunity in the coming years. We remain positive on Sunny Optical as a leading provider in advanced camera solutions, set to benefit from rising camera specifications. 1Q19 likely a N-T bottom, BUY on share price correction Sunny Optical shares fell 11% in May, likely due to market concerns of resumed China-US trade tension. The shares are at 21x/16x 2019/20E P/E (vs. 22x historical average), undemanding in our view. We believe Sunny Optical’s fundamentals remain solid, with margins set to improve in 2H19 helped by process optimization and yield improvement. We fine-tune our estimates (largely unchanged), maintain our BUY rating with TP to HK$105 (based on 20x 2020E P/E).