Sunny Optical: Profit Alert for the First Half of 2024 Is a Modest, Positive Surprise

Sunny Optical has previewed that its first half of 2024 net profit will increase 140%-150% year on year to CNY 1.07 billion, or CNY 0.98 per share at the midpoint. This is ahead of our full-year net profit and earnings per share forecasts of CNY 1.7 billion and CNY 1.56, respectively. However, the surprise is only modest as Sunny published shipment figures in early July, and competitor Q Technology posted its own profit alert last week. We intend to update our forecasts after Sunny announces first-half results in late August. However, shares are down 4% as of Monday midday as sentiment is likely dampened by heightened uncertainty of the United States presidential election.