EarningsSunny Optical preannounced FY23E net profit decline of 50-55% YoY, 23%/18% below estimates, attributed to weak smartphone demand, intense competition, and the prolonged de-spec trend.
Financial PerformanceSunny's FY23 GPM of 14.1% was below expectations due to more intense competition despite spec upgrade and more high-end models.
Stock PriceTrading at 26.1x FY24E P/E, the stock is fairly traded, and there is expected pressure on the stock in the near term.