Daily focus：Sunny Optical（2382）
Sunny Optical expressed growth potential across multiple sectors in 2025. Although smartphone shipment volumes are stabilizing, the market value is expected to grow by approximately 7%, mainly driven by high-end models and optical upgrades. Among these, shipments of glass-plastic hybrid lenses are expected to surge by over 400% year-on-year, catering to the demand for long-focus periscope and ultra-thin main lenses. In addition, the company’s automotive optics segment has performed outstandingly, with shipments of automotive lens modules projected to exceed 400 million units in 2025, benefiting from the rapid growth in China’s smart driving demand. Sunny Optical holds over 60% market share in the 8MP automotive lens module market and has secured large orders for 17MP automotive lenses, with mass production expected to begin in 2026. Augmented Reality (XR) and robotics businesses also exhibit long-term growth momentum. In 2025, shipments of mixed reality (MR) and smart glasses are both projected to exceed 10 million units. Overall, leveraging strong technological leadership and market expansion capabilities, Sunny Optical continues to make breakthroughs in smartphones, automotive, XR, and robotics — all emerging and growth sectors — with expectations for stable improvement in profitability and cash flow in the future.
Non-farm payroll higher than expected
Trump's tax reform bill passed the vote in the House of Representatives. Trump plans to sign the bill on Friday. The U.S. Bureau of Labor Statistics announced on Thursday that seasonally adjusted nonfarm employment increased by 147,000 in June, above the expected 110,000. The unemployment rate fell to 4.1%. After the nonfarm employment data was released, U.S. Treasury bond prices came under pressure. This unexpectedly strong data will reduce the likelihood on the Federal Reserve to cut interest rates, despite Trump's repeated public calls for the Fed to take rate-cutting action.
On Thursday, the Southbound Stock Connect recorded a net outflow of HKD 3 billion. Among the stocks, Meituan (3690) saw the largest net inflow, amounting to HKD 980 million, followed by SMIC (981). On the other hand, Alibaba (9988) experienced the largest net outflow of HKD 3.2 billion, followed by Tencent (0700).
U.S. President Donald Trump stated he will send letters to notify countries about reciprocal tariff rates. The Hang Seng Index opened 169 points lower, and the early losses widened to 379 points, reaching 23,690 points. It ended the day down 154 points or 0.6%, closing at 23,916 points. The China Enterprises Index fell 39 points or 0.4%, closing at 8,609 points. The Hang Seng Tech Index dropped 17 points or 0.3%, ending at 5,216 points. Total market turnover for the day was HKD 267.8 billion. Alibaba (9988) issued approximately HKD 12 billion in zero-coupon convertible bonds, which can be converted into shares of Alibaba Health (241) stock prices fell by 1% and 6.6%, respectively.
Source: KGI Investment Products and Solutions Department
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