Sunny Optical Technology Shares Slide After Dismal 2023 Guidance
By Kimberley Kao
Sunny Optical Technology shares tumbled after it guided for a worse-than-expected fall in its 2023 net profit.
The stock was 10% lower at 48.55 Hong Kong dollars (US$6.21) at the Hong Kong midday break, after earlier hitting an intraday low of HK$48.35, its lowest since February 2017.
The manufacturer of optical-related products late Tuesday said that 2023 net profit would likely be between 1.08 billion yuan (US$150.90 million) and CNY1.20 billion, down 50% to 55% compared with the same period a year earlier.
Sunny Optical attributed the fall to the Chinese economy's slow recovery and intense competition.
Citigroup analyst Kyna Wong said some investors were expecting 2023 net profit to be above CNY1.4 billion.
Wong cut her 2023 net profit estimate by 7% to CNY1.15 billion. She added Sunny Optical in 2024 will likely benefit from factors such as an improvement in production yields for high-end smartphone products and it may also resume the supply of modules to a major Android customer.
Citigroup has a buy rating on the stock with a target price of HK$79.
Write to Kimberley Kao at kimberley.kao@wsj.com
(END) Dow Jones Newswires
January 30, 2024 23:46 ET (04:46 GMT)
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