Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>Sunny Optical has released solid Q4/24 numbers, with revenue and profitability rebounding on the back of strong demand in the company's core markets.</li>
<li>The good performance was in line with expectations, given that Sunny had released a positive profit alert and announced a recovery in shipment volumes in February 2025.</li>
<li>Cash flows were strong, with material FCF.</li>
</ul>


Sunny Optical has released solid Q4/24 numbers, with revenue and profitability rebounding on the back of strong demand in the company's core markets.
The good performance was in line with expectations, given that Sunny had released a positive profit alert and announced a recovery in shipment volumes in February 2025.
Cash flows were strong, with material FCF.


Sunny Optical - Revenue and Profitability Rebound

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Sunny Optical Technology Group / Equity Bottom-Up

<ul><li>Sunny’s FY24 revenue/NP growth of 21%/146% YoY was largely in-line with its prior profit alert, driven by solid growth across all segments and improving GPM on a better product mix.</li><li>Although the stock corrected by 10% yesterday due to softerthan-expected HCM/HLS/VLS shipment guidance (+5-10%/+5%/+15-20% YoY) in our view, we believe Sunny’s strategic focus on HCM/HLS profitability over market share and accelerated expansion into automotive/XR/robotics segments will continue to drive earnings growth into 2025/26.</li><li>In the longer term, we believe Sunny is well-positioned to capture multiple growth opportunities in AI phone upgrade, ADAS penetration, AI glass product cycle and embodied intelligent robotics. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny’s FY24 revenue/NP growth of 21%/146% YoY was largely in-line with its prior profit alert, driven by solid growth across all segments and improving GPM on a better product mix.Although the stock corrected by 10% yesterday due to softerthan-expected HCM/HLS/VLS shipment guidance (+5-10%/+5%/+15-20% YoY) in our view, we believe Sunny’s strategic focus on HCM/HLS profitability over market share and accelerated expansion into automotive/XR/robotics segments will continue to drive earnings growth into 2025/26.In the longer term, we believe Sunny is well-positioned to capture multiple growth opportunities in AI phone upgrade, ADAS penetration, AI glass product cycle and embodied intelligent robotics. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) - 2H24 Earnings Recovery on Track

<ul><li>Sunny pre-announced net profit of RMB 2.64bn-2.75bn for 2024, up 140-150% YoY, with mid-point beating our/Bloomberg consensus estimates by 10%/10%, mainly due to smartphone market recovery, high-end/AI smartphone demand, strong NEV demand and rising adoption of intelligence driving.</li><li>For 2025, we believe Sunny will continue to benefit from China subsidies and AI spec upgrade, acceleration of intelligence driving, and booming edge AI devices (e.g. AI smart glasses).</li><li>We expect earnings upgrade cycle to continue into 1H25E, and we raise FY25/26E earnings by 17%/14% to reflect the AI smartphone upgrade, intelligence driving trend and proliferation of edge AI. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny pre-announced net profit of RMB 2.64bn-2.75bn for 2024, up 140-150% YoY, with mid-point beating our/Bloomberg consensus estimates by 10%/10%, mainly due to smartphone market recovery, high-end/AI smartphone demand, strong NEV demand and rising adoption of intelligence driving.For 2025, we believe Sunny will continue to benefit from China subsidies and AI spec upgrade, acceleration of intelligence driving, and booming edge AI devices (e.g. AI smart glasses).We expect earnings upgrade cycle to continue into 1H25E, and we raise FY25/26E earnings by 17%/14% to reflect the AI smartphone upgrade, intelligence driving trend and proliferation of edge AI. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) - Earnings Upgrade Cycle Has Just Begun; Raise TP to HK$102.89

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>HK Alpha Portfolio returned -1.29% in December and outperformed the benchmark by 0.34%. The portfolio has outperformed Hong Kong indexes by 7.93% to 9.64% since its inception on 10/01/24.  </li>
<li> About 75% of the portfolio's excess returns have been from alpha generation. The portfolio had no exposure to Real Estate, Energy or Materials. </li>
<li>At month-end we sold <a href="https://www.smartkarma.com/entities/china-cinda-asset-management-co-ltd" target="_blank" data-smartkarma-citation="entities:372:1" rel="noopener">China Cinda Asset Management (1359 HK)</a> , <a href="https://www.smartkarma.com/entities/citic-ltd" target="_blank" data-smartkarma-citation="entities:20590:1" rel="noopener">Citic Ltd (267 HK)</a> , <a href="https://www.smartkarma.com/entities/china-galaxy-securities-co-h" target="_blank" data-smartkarma-citation="entities:165:1" rel="noopener">China Galaxy Securities (H) (6881 HK)</a> and <a href="https://www.smartkarma.com/entities/gds-holdings-ltd" target="_blank" data-smartkarma-citation="entities:32157:1" rel="noopener">GDS Holdings (9698 HK)</a> .  </li>
</ul>


HK Alpha Portfolio returned -1.29% in December and outperformed the benchmark by 0.34%. The portfolio has outperformed Hong Kong indexes by 7.93% to 9.64% since its inception on 10/01/24.  
 About 75% of the portfolio's excess returns have been from alpha generation. The portfolio had no exposure to Real Estate, Energy or Materials.  
At month-end we sold China Cinda Asset Management (1359 HK) , Citic Ltd (267 HK) , China Galaxy Securities (H) (6881 HK) and GDS Holdings (9698 HK) .  


<ul><li>We hosted Sunny Optical at 4Q outlook investor call this week.</li><li>Mgmt. reiterated that 2024 guidance for HCM/HLS/VLS/auto module/XR businesses remains unchanged and has been well on track YTD.</li><li>Mgmt. is also confident that new CEO and mgmt. team will continue to lead Sunny for sustainable long-term growth. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We hosted Sunny Optical at 4Q outlook investor call this week.Mgmt. reiterated that 2024 guidance for HCM/HLS/VLS/auto module/XR businesses remains unchanged and has been well on track YTD.Mgmt. is also confident that new CEO and mgmt. team will continue to lead Sunny for sustainable long-term growth. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) - NDR Takeaway: Guidance Well on Track

China

Sunny Optical Technology Group Co., Limited designs and manufactures optical and optical related products. The Company's products include glass/plastic lenses, prisms, mobile phone camera modules, microscopes, surveying instruments, and other analytical instruments.

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Sunny Optical Technology Group (2382 HK)

Sunny Optical - Revenue and Profitability Rebound

Sunny Optical has released solid Q4/24 numbers, with revenue and profitability rebounding on the back of strong demand in the company's core markets.

Lucror Analytics

Sunny Optical (2382 HK) - 2H24 Earnings Recovery on Track

Sunny’s FY24 revenue/NP growth of 21%/146% YoY was largely in-line with its prior profit alert, driven by solid growth across all segments and...

CMB International

Sunny Optical (2382 HK) - Earnings Upgrade Cycle Has Just Begun; Raise TP to HK$102.89

Sunny pre-announced net profit of RMB 2.64bn-2.75bn for 2024, up 140-150% YoY, with mid-point beating our/Bloomberg consensus estimates by 10%/10%

CMB International

HONG KONG ALPHA PORTFOLIO (January 2025)

Hong Kong Alpha portfolio lost 1.29% in January and outperformed its benchmark. We sold GDS, Citic, Cinda and China Galaxy Securities. We added...

David Mudd

Sunny Optical (2382 HK) - NDR Takeaway: Guidance Well on Track

Mgmt. reiterated that 2024 guidance for HCM/HLS/VLS/auto module/XR businesses remains unchanged and has been well on track YTD.

CMB International

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