External broker reports(aggregated public sources), CMB International

CMB International

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.

External broker reports(aggregated public sources)

Equity Bottom-Up

Sunny Optical Technology Group / Equity Bottom-Up

<ul><li>We are incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate automobile/XR potential upside in FY23E.</li><li>However, we believe a bumpy 1H23 will remain the major overhang for the stock given sluggish HCM/HLS shipment/GPM, and we trimmed FY23-24E EPS by 10-14% to reflect weaker margins.</li><li>Our new EPS are 14-21% below consensus. Trading at 27.4x/23.7x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with lowered SOTP-based TP of HK$86.75.</li></ul><p><em>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.</em></p>

We are incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate automobile/XR potential upside in FY23E.However, we believe a bumpy 1H23 will remain the major overhang for the stock given sluggish HCM/HLS shipment/GPM, and we trimmed FY23-24E EPS by 10-14% to reflect weaker margins.Our new EPS are 14-21% below consensus. Trading at 27.4x/23.7x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with lowered SOTP-based TP of HK$86.75.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) – Strong  auto/XR pipeline to weather smartphone headwinds