Sunny Optical Technology Group Co Ltd

Yuanta Securities said DR SUNNY19, which references shares of SUNNY OPTICAL TECHNOLOGY (GROUP) COMPANY LIMITED (2382), has its own specific catalysts after Counterpoint Research gathered data from distributors showing that first-day launch sales of the iPhone 18 Pro and 18 Pro Max were about 28% higher than those of the iPhone 17 Pro, even though device prices rose sharply. Sunny benefits directly from producing the new variable-aperture camera, which carries a higher per-unit margin, so it gains from both sales volume and higher margins. Over the longer term, positive signals are emerging from greater revenue diversification away from mobile phones into autos and AI devices. In its first-half 2026 results, mobile phone revenue fell 0.8% year on year, but the automotive business grew 11% year on year and other businesses surged 88% year on year, including revenue from robotics and smart cameras. The gross margin of the other businesses reached 34%, compared with 12% for the mobile phone business. The current price trades at a 2027 PER of only 13 times, and the target price of 3.50 baht per DR implies roughly 22% upside.

The 4th China International Supply Chain Expo is underway in Beijing, bringing together 676 direct exhibitors and over 1,200 including partners under the theme 'Linking the World, Creating the Future.' NVIDIA showcased its AI ecosystem with domestic robotics partners, while Apple demonstrated smart manufacturing with Sunny Optical, AAC, and Coreain. Newcomer BrainCo displayed an intelligent bionic hand with 10 joints and AI-driven EMG decoding for precise finger control. In the Advanced Manufacturing chain, China Railway Construction exhibited China's largest shield machines, and Siwei Transmission showed reducers for robots, producing 1,000 units daily with orders booked through 2027. AI empowerment was evident across all chains, from smart factories and logistics to smart cities and healthcare, illustrating deep integration of technology and industry.