Daily Investment Strategy
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.
Tensions in the Middle East continue to escalate
Investors are closely monitoring the developments in the conflict between Iran and Israel. U.S. President Donald Trump has postponed a decision to take military action against Iran. In addition, the market is paying attention to statements from Federal Reserve officials. On Friday, Federal Reserve Governor Christopher Waller stated that tariffs are a one-time factor and that the Fed should not wait until the job market collapses to cut interest rates. He supports the idea of considering a rate cut in July and believes tariffs will not lead to sustained inflation. However, another official, Thomas Barkin, who does not have voting rights at the current stage, said in an interview that the Fed does not need to rush into cutting rates, mainly due to inflation risks from tariffs and the continued strength of the labor market.
On Friday, the Hong Kong Stock Connect recorded a net inflow of HKD 1.55 billion. Among the stocks, China Construction Bank (939) saw the largest net inflow of HKD 690 million, followed by Semiconductor Manufacturing International Corporation (SMIC, 981). Tencent (0700) recorded the largest net outflow of HKD 1.23 billion, followed by Pop Mart (9992).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
