伯恩斯坦-舜宇光学2025财年：利润率韧性与市场份额提升目标价76港元-Sunny Optical FY2025 Margin resilience,and market share gain. PT = HK$76

SeetheDisclosureAppendixofthisreportforrequireddisclosures,analystcertificationsandotherimportantinformation.Alternatively,visitourGlobalResearchDisclosureWebsite.

FirstPublished:31Mar202615:10UTCCompletionDate:31Mar202615:10UTC

AsiaTechHardware

SunnyOpticalTechnologyGroupCoLtd

Rating

Outperform

PriceTarget

2382.HK76.00HKD(88.00OLD)

31March2026

PriceTargetChange

AlexWang,CFA

+85221232613

alex.wang@

ShirleyYang,CFA

+85221232660

shirley.yang@

EthanXu

+85221232634

ethan.xu@

SunnyOpticalFY2025:Marginresilience,andmarketsharegain.PT=HK$76

CloseDate31Mar2026

2382.HKClosePrice(HKD)53.45

PriceTarget(HKD)76.00

Upside/(Downside)42%

52-WeekRange91.40/51.20

2025resultswereinlinewithpreliminarynumbers.Totalrevenuegrew13%YoY,GM

improvedby+1.4pptsYoYto21.6%,broadlyinlinewithconsensus.HandsetGMincreased

to15%(vs.13%in2024),fueledbyhighermixofhigh-endproducts(periscopelens/module

rev.+21%/56%YoY;hybridlensrevenuenearlydoubled).Autosegmentthatcarrieshigher

GMoutgrewthecorp.average(+21%YoY).XRrevenuefell7%YoY,butmarginincreasedto

.

ASIAX1,624.90

20%onhigherAIglassesmix

2026smartphonebusinessoutlookisbetterthanfeared.Managementguides5–10%FYEDec

revenuegrowthdespiteapotentialmid-teensmarketshipmentdecline,targetinglensGMflatDivYield2.2%

YoY(25–30%)andmoduleGM≥8%(slightlybelowourestimate).ThissolidoutlookislikelyMarketCap(HKD)(M)57,671

drivenbynewprojectwinsatSamsung,Apple,andHuawei,inourview.OverseassmartphoneEV(HKD)(M)44,075

revenueisguidedtodouble.AsannouncedinJan-2026,SunnyplanstospinoffandlistitsautoPerformanceYTD1M6M12M businessonHKEX.Whilenoguidancewasgiven,wemodeldouble-digitrevenuegrowthforAbsolute(%)(18.5)(8.2)(40.9)(25.1)bothlensandmodule.XRremainssoftthisyearduetolimitednewlaunches.Overallmgmt.ASIAX(%)(0.6)(11.6)2.724.6

expects2026revenueandOPtogrowbyatleast7%.Relative(%)(17.8)3.4(43.6)(49.7)

Source:Bloomberg,Bernsteinestimatesandanalysis.CPO/NPOprojectscouldofferupsidefrom2H27attheearliest,inourview.Similar

HK$1002000

HK$901800

HK$801600

HK$701400

HK$601200

04/2506/2509/2512/2503/26

2382.HKASIAX

toLargan,SunnyisexploringopticalconnectivityopportunitiesinAIdatacenters.WebelievePricePerformance,1YRopticalleaderslikeSunnycouldparticipateinpartssuchasmicro-lenses,prisms,coatings,

andotherpassivecomponents(CPOPrimer).However,commercializationwilltaketimegivenhigherproductcomplexityandadifferentecosystem.

WeforecastSunnyOpticaltodeliver8%/22%revenue/OPCAGRfrom2025-27,drivenbysharegainsforoverseascustomersandrisingADASpenetration.WeexpectcorporateGMtoholdc.20%thisyear,andrise1pptin2027asmemorypressureeases.vs.oldmodel,wetrimGMthisyearonasoftermarketoutlook.Excludingone-offsin2025,wemodelEPSCAGRof14%till2027.Overall,whileweaksentimenttowardsconsumerelectronicsmaypersistinshortterm,Sunnyoffersattractivelong-termupside,inourview.

InvestmentImplications

ReportedEPS

F25A

F26E

F27E

2382.HK(CNY)

4.25

3.39

4.46

OLD

--

3.47

--

ValuationMetrics

F25A

F26E

F27E

ReportedP/E(x)

11.1

13.9

10.6

EV/EBIT(x)

11.1

10.1

7.5

WithEPSgrowth(

exl.one-ff)moderatingfrom37%lastyeartoflat/31%in2026/2027,we

use17xP/E

(

old20x

)

andapplyitto2026-27avg.EPSofRMB3.9

,PT=HK$76.Outperform.

Financials

F25A

F26E

F27E

CAGR

Revenues(M)

43,229

46,604

50,664

--

EBITMargin(%)

8.1

8.3

10.2

--

Source:Bloomberg,Bernsteinestimatesandanalysis.

AlexWang,CFA+85221232613

alex.wang@

31March2026

DETAILS

2025EARNINGSRESULTS

2025resultswereinlinewithpreliminarynumbers.Totalrevenuegrew13%YoY,GMimprovedby+1.4pptsYoYto21.6%,broadlyinlinewithconsensus.HandsetGMincreasedto15%(vs.13%in2024),fueledbyhighermixofhigh-endproducts(periscopelens/modulerev.+21%/56%YoY;hybridlensrevenuenearlydoubled).AutosegmentthatcarrieshigherGMoutgrewthecorp.average(+21%YoY).XRrevenuefell7%YoY,butmarginincreasedto20%onhigherAIglassesmix.

2026smartphonebusinessoutlookisbetterthanfeared.Managementguides5–10%revenuegrowthdespiteapotentialmid-teensmarketshipmentdecline,targetinglensGMflatYoY(25–30%)andmoduleGM≥8%(slightlybelowourestimate).ThissolidoutlookislikelydrivenbynewprojectwinsatSamsung,Apple,andHuawei,inourview.Overseassmartphonerevenueisguidedtodouble.AsannouncedinJan-2026,SunnyplanstospinoffandlistitsautobusinessonHKEX.Whilenoguidancewasgiven,wemodeldouble-digitrevenuegrowthforbothlensandmodule.XRremainssoftthisyearduetolimitednewlaunches.Overallmgmt.expects2026revenueandOPtogrowbyatleast7%.

CPO/NPOprojectscouldofferupsidefrom2H27attheearliest,inourview.SimilartoLargan,SunnyisexploringopticalconnectivityopportunitiesinAIdatacenters.WebelieveopticalleaderslikeSunnycouldparticipateinpartssuchasmicro-lenses,prisms,coatings,andotherpassivecomponents(CPOPrimer).However,commercializationwilltaketimegivenhigherproductcomplexityandadifferentecosystem.

EXHIBIT1:SunnyOpticaldeliveredin-lineresultsfor2025.Excludingtheone-offinvestmentgainofRMB919M,underlying2H25netprofitiswasline

(RMBinMillions)

FY2024Actual

FY2025Actual

YoY

Bernstein

Consensus

Differencevs.

Bernstein

Consensus

Revenue

38,294

43,229

12.9%

42,224

42,965

2.4%

0.6%

GrossProfit

7,006

8,516

21.6%

8,385

8,541

1.6%

-0.3%

Margin

18.3%

19.7%

1.4%

19.9%

19.9%

-0.2%

-0.2%

OperatingProfit

2,243

3,494

55.8%

3,464

3,455

0.9%

1.1%

Margin

5.9%

8.1%

2.2%

8.2%

8.0%

-0.1%

0.0%

ProfitAttributabletoShareholders

2,699

4,639

71.9%

3,412

3,719

36.0%

24.7%

Margin

7.0%

10.7%

3.7%

8.1%

8.7%

2.7%

2.1%

EPS(RMB)

2.48

4.27

72.2%

3.1

3.4

36.3%

25.1%

Source:Companydata,Bloomberg,Bernsteinanalysis

EXHIBIT2:SunnyOptical’s2H25resultsareinline

(RMBinMillions)

2H24

2H25Actual

HoH

YoY

Bernstein

Consensus

Differencevs.

Bernstein

Consensus

Revenue

19,434

23,577

20.0%

21.3%

22,572

23,313

4.5%

1.1%

GrossProfit

3,760

4,621

18.7%

22.9%

4,491

4,647

2.9%

-0.5%

Margin

19.3%

19.6%

-0.2%

0.3%

19.9%

19.9%

-0.3%

-0.3%

OperatingProfit

1,255

2,011

35.5%

60.2%

1,980

1,971

1.6%

2.0%

Margin

6.5%

8.5%

1.0%

2.1%

8.8%

8.5%

-0.2%

0.1%

ProfitAttributabletoShareholders

1,620

2,993

81.8%

84.7%

1,766

2,073

69.5%

44.4%

Margin

8.3%

12.7%

4.3%

4.4%

7.8%

8.9%

4.9%

3.8%

EPS(RMB)

1.49

2.75

81.4%

85.0%

1.61

1.90

70.5%

45.1%

NetProfitexl.One-off

1,620

2,074

26.0%

28.0%

1,766

2,073

17.5%

0.1%

Source:Companydata,Bloomberg,Bernsteinanalysis

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP2

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP3

EXHIBIT3:Consensusgenerallyexpectstheprofitabilityofcameramoduletobestablein2026,incl.suppliersinAndroidmarket(Sunny,OFilm,OTech)

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2019

2020

2021

2022

2023

2024

2025E

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

20%

15%

10%

5%

0%

-5%

QTech(ModuleSegment)Cowell(CorporateGM)

SunnyOptical(Module

Segment)

LGInnotek(Corporate

GM)

GMProfilesofModulePlayers

OFilm

(SmartphoneSegment)

SunnyOptical2026EnumberisBernsteinestimates,othersarefromBloombergconsensus;AllcompaniesotherthanSunnyOpticalarenotcoveredSource:Companydisclosure,Bernsteinanalysisandestimates

EXHIBIT4:ConsensusgenerallyexpectsLensplayers’GMstobestableevenamidsoaringmemoryprice

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2020

2021

2022

2023

2024

2025

2026E

G

Largan(CorporateGM)Genius(CorporateGM)SunnyOptical(LensSegment)AAC(OpticsSegment)

70%

60%

50%

40%

30%

20%

10%

0%

-10%

-20%

MProfilesofLensPlayers

SunnyOptical2026EnumberisBernsteinestimates,othersarefromBloombergconsensus;AllcompaniesotherthanSunnyOpticalandLarganarenotcoveredSource:CompanydisclosureandBernsteinanalysis

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP4

EXHIBIT5:Whilevehiclesegmentonlycounts17%ofSunny'srevenue...

SunnyOpticalRevenueMix(2025)

Otherproducts

14%

Handset

63%

Vehicle

17%

AR/VR

6%

Source:Companydata,Bernsteinanalysis

EXHIBIT6:...vehiclesegmentaccountsfor27%ofcompany'stotalgrossprofit

SunnyOpticalGrossProfitMix(2025)

Otherproducts

20%

Handset

47%

Vehicle

27%

AR/VR

6%

Source:Companydata,Bernsteinanalysis

MODELUPDATE

WemodelSunnyOpticaltogrowitsrevenue/operatingprofitby8%/22%CAGRfrom2025to2027,fueledbymarketsharegainsinhandsetandseculargrowthofautolensandmodulesdrivenbyADASpenetration.For2026,weadjustedupourrevenueprojectionwithincreasedtheASPofhandsetproductsandmarketsharegaininoverseasmarket(likelydrivenbyAppleandSamsung).

In2025-2027,weexpectSunnytogrowitstoplineby8%CAGRwithautooutgrowingthecorporateaverage.WeprojectcorporateGMtostay~20%despitesoaringmemorypricein2026,drivenbyhighermixfromhigh-marginautoproductsandhigh-endhandsetproducts,andgrowby1pptin2027asconsumerelectronicrecoverwitheasingmemorypricepressure.Excludingone-offinvestmentgainofRMB919Mlastyear,wemodelEPStogrowata14%CAGRtill2027.AsEPSgrowthdecelerateandrisingmemorybringsuncertaintiestosuppychainthisyear,weloweredourtargetPEinputfrom20xto17x,below1SDof18x.Weapplythaton2026-27avg.EPSofRMB3.9(vs.previous2026-27averageEPSofRMB4.0),andcutPTtoHK$76(RMB/HKD=1.14).(Exhibit9-Exhibit15)Outperform.

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP5

SO

EXHIBIT7:WeexpectSunnyOpticaltogrowat8%CAGRin2026-27

Sales(RMBB)

YoY

unnypticalrevenuebyapplication

202120222023202420252026E2027E

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

60

50

40

30

20

10

-

HandsetVehicle

AR/VROtherproductsYoY

Source:Companyreports,Bernsteinanalysisandestimates

EXHIBIT8:WemodelSunnyOptical’sGMtoremainstablein2026andupby1%in2027

SunnyOpticalGMbyapplication

40%

35%

30%

25%

20%

15%

10%

5%

0%

202420252026E2027E

HandsetVehicle

AR/VROtherproducts

TotalGM

Source:Companyreports,Bernsteinanalysisandestimates

EXHIBIT9:WeexpectSunnyOptical'sGMtoremainstablein2026withhigherhigh-endmix,andtoreboundin2027asmemorypricepressureeasing

HandsetLensHandsetModuleAutoLensAutoModuleTotalGM

2023202420252026E2027E

29%

27%26%

24%

15%

9%9%3%

16%17%16%

9%9%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

18%20%20%21%

14%

40%40%

35%35%

GMbySegment

13%14%

37%

Source:Companydisclosure,Bernsteinestimatesandanalysis

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP6

EXHIBIT10:WenowexpecttheASPforhandsetlens/moduletogrowatlow-teensin2026andlow-singledigitinnextyear,whileautolensASPtobestable

ASP(RMB)

2021

2022

2023

2024

2025

2026E

2027E

2020

2021

2022

2023

2024

2025

2026E

2027E

2020

2021

2022

2023

2024

2025

2026E

2027E

YoYgrowth

6040%

5030%

4020%

3010%

200%

10-10%

0-20%

HandsetLensHandsetModuleVehicleLens

SunnyOpticalASPbysegment

ASPYoY

Source:Companyreports,Bernsteinestimatesandanalysis

EXHIBIT11:OverallweestimateSunnyOpticalwillachieve8%revenueCAGRfrom2025to2027...

RMB(B)

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2027E

YoY

60%

50%

40%

30%

20%

10%

0%

-10%

-20%

60

50

40

30

20

10

0

SunnyOpticalRevenueandYoY

TotalRevenueYoY

Source:Companydisclosure,Bernsteinestimatesandanalysis

EXHIBIT12:...andhave2%CAGRinEPSoverthesameperiod(

14%ifexcl.one-offgain

in2025)

SunnyOpticalEPSandYoY

RMB

YoY

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026E

2027E

160%

120%

80%

40%

0%

-40%

-80%

5

4

3

2

1

0

EPSYoY

Source:Companydisclosure,Bernsteinestimatesandanalysis

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP7

EXHIBIT13:WeexpectSunnyOptical’sGMremainsstablein2026andreboundin2027,withstrongrecoveryof

EPSinnextyear

ComparisionTable

2025

2026E

2027E

Revenue(RMBB)

BernsteinOld

44.7

51.0

YoY

6%

14%

Bernstein

43.2

46.6

50.7

YoY

13%

8%

9%

Consensus

46.1

51.2

YoY

7%

11%

Newvs.old

4%

-1%

BERNvs.consensus

1%

-1%

GM

BernsteinOld

Bernstein

Consensus

19.7%

20.4%

19.5%

20.1%

20.9%

21.1%

20.4%

Newvs.old

-0.9%

0.2%

BERNvs.consensus

-0.6%

0.7%

OPM

BernsteinOld

Bernstein

Consensus

8.1%

8.8%

8.3%

9.2%

10.2%

10.2%

9.8%

Newvs.old

-0.5%

0.0%

BERNvs.consensus

-0.9%

0.5%

EPS(RMB)

3.5

4.5

30%

4.5

31%

4.2

15%

BernsteinOld

YoY

YoY

11%

4.2

71%

3.4

3.7

Bernstein

-20%

Consensus

7%

YoY

EXHIBIT14:WesetSunny'stargetP/Eat17x

SunnyOpticalForwardP/E

Jan-20

Jul-20

Jan-21

Jul-21

Jan-22

Jul-22

Jan-23

Jul-23

Jan-24

Jul-24

Jan-25

Jul-25

Jan-26

35

30

17xfor

ourPT

25

20

15

22x(6-yrAvg)27x(+1SD)

18x(-1SD)

10

5

0

Source:Bloomberg,Bernsteinestimatesandanalysis

Newvs.old

-2%

-1%

BERNvs.consensus

-8%

5%

Source:Companyreports,Bernsteinanalysisandestimates

EXHIBIT15:RelativeP/EagainstHSIindexisatthelowestrangecomparedtopast5years

Jan-20

Jul-20

Jan-21

Jul-21

Jan-22

Jul-22

Jan-23

Jul-23

Jan-24

Jul-24

Jan-25

Jul-25

Jan-26

SunnyOpticalRelativeP/E

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

vs.HSI

4.0

Source:BloombergandBernsteinanalysis

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP8

APPENDIX-FINANCIALFORECASTS

EXHIBIT16:SunnyOpticalFinancialProjections

RMBinMillions

2022

2023

2024

2025

2026E

2027E

IncomeStatement

NetSales

33,197

31,681

38,294

43,229

46,604

50,664

GrossProfit

6,605

4,590

7,006

8,516

9,090

10,690

SG&AExpense

1,281

1,425

1,839

1,763

1,816

1,907

R&DExpense

2,803

2,566

2,924

3,259

3,421

3,592

EBIT

2,520

599

2,243

3,494

3,853

5,191

EBITDA

4,400

2,547

4,344

5,726

5,914

7,348

PretaxIncome

2,715

1,358

3,144

5,416

4,300

5,647

Tax

241

208

367

609

469

614

NetIncome

2,408

1,099

2,699

4,639

3,706

4,868

EarningsPerShare(RMB)(Diluted)

2.2

1.0

2.5

4.2

3.4

4.5

MarginAnalysis

GrossProfit

19.9%

14.5%

18.3%

19.7%

19.5%

21.1%

EBIT

7.6%

1.9%

5.9%

8.1%

8.3%

10.2%

EBITDA

13.3%

8.0%

11.3%

13.2%

12.7%

14.5%

NetIncome

7.3%

3.5%

7.0%

10.7%

8.0%

9.6%

SequentialGrowth

NetSales

-11.5%

-4.6%

20.9%

12.9%

7.8%

8.7%

GrossProfit

-24.4%

-30.5%

52.6%

21.6%

6.7%

17.6%

EBIT

-50.2%

-76.2%

274.5%

55.8%

10.3%

34.7%

NetIncome

-51.7%

-54.3%

145.5%

71.9%

-20.1%

31.4%

EarningsPerShare

-51.7%

-54.3%

146.3%

71.4%

-20.1%

31.4%

BalanceSheet

CashandCashEquivalents

7,033

13,085

4,509

7,482

8,033

9,062

AccountsReceivable

7,762

8,485

10,078

12,072

12,913

13,989

Inventory

4,721

5,137

5,870

7,180

7,626

8,076

NetFixedAssets

10,120

9,927

10,525

9,818

10,273

10,649

TotalAssets

43,001

50,297

53,807

59,215

60,464

63,137

AccountsPayable

12,927

20,336

21,035

22,001

21,138

20,023

TotalDebt

2,020

5,562

5,826

3,176

3,336

3,632

TotalEquity

22,182

22,882

25,293

29,764

31,463

34,656

CashFlow

CashFlowFromOperations

7,377

2,665

3,455

6,080

4,393

4,940

CashFlowFromInvestments

(3,834)

(1,488)

(10,437)

(999)

(1,896)

(2,375)

CashFlowFromFinancing

(2,159)

4,858

(1,574)

(2,094)

(1,946)

(1,537)

Depreciation&Amortization

1,879

1,948

2,101

2,231

2,062

2,157

Capex

(3,047)

(2,245)

(2,084)

(2,931)

(2,517)

(2,533)

FCF

4,912

159

714

3,191

1,479

2,941

As%ofEBITDA

112%

6%

16%

56%

25%

40%

KeyFinancialMetrics

ROE

11.4%

5.0%

11.4%

17.2%

12.4%

15.0%

ROA

6.1%

2.5%

5.3%

8.5%

6.4%

8.1%

Debt/Equity

9.1%

24.3%

23.0%

10.7%

10.6%

10.5%

NetDebt/Equity

-22.6%

-32.9%

5.2%

-14.5%

-14.9%

-15.7%

Debt/Capital

8.3%

19.6%

18.7%

9.6%

9.6%

9.5%

DividendPerShare(RMB)

1.0

0.5

0.2

0.5

0.9

0.7

DividendPayoutRatio

21.2%

21.0%

20.9%

20.5%

20.4%

20.5%

Source:Companyreports,Bernsteinanalysisandestimates

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP9

BERNSTEINTICKERTABLE

31Mar

2026

TTM

ReportedEPSReportedP/E(x)

Ticker

Rating

Cur

Closing Price

Price

Target

Rel.

Perf.

Cur2025A2026E2027E

2025A2026E2027E

2382.HK(SunnyOptical)OLD

ASIAX

O

HKD

53.451,624.90

76.00

88.00

(49.7)%

CNY4.253.394.46

3.47

11.113.910.6

PRICETARGETCHANGE/ESTIMATECHANGEINBOLD

O-Outperform,M-Market-Perform,U-Underperform,NR-NotRated,CS-CoverageSuspendedSource:Bloomberg,Bernsteinestimatesandanalysis.

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP10

DISCLOSUREAPPENDIX

I.REQUIREDDISCLOSURES

Referencesto"Bernstein"orthe“Firm”inthesedisclosuresrelatetothefollowingentities:BernsteinInstitutionalServicesLLC

(April1,2024onwards),SanfordC.Bernstein&Co.,LLC(preApril1,2024),BernsteinAutonomousLLP,BSGFranceS.A.(April1,

2024onwards),SanfordC.Bernstein(HongKong)Limited盛博香港有限公司,SanfordC.Bernstein(Canada)Limited,Sanford

C.Bernstein(India)PrivateLimited(SEBIregistrationno.INH000006378),SanfordC.Bernstein(Singapore)PrivateLimited,

SanfordC.BernsteinJapanKK(サンフォード・C・バーンスタイン株式会社)andanalystsemployedbySociétéGénérale

AfricaTechnologies&ServicestoproduceBernsteinresearchunderaGlobalServicesAgreementinplacebetweenBernstein

andSociétéGénérale.

BernsteinispartofajointventurebetweenSociétéGénérale(SG)andAllianceBernstein,L.P.(AB).Unlessspecificallynotedotherwise,forpurposesofthesedisclosures,referencestoBernstein’s“affiliates”relatetobothSGandABandtheirrespectiveaffiliates.

VALUATIONMETHODOLOGY

SunnyOpticalTechnologyGroupCoLtd

WesetaHK$76targetpriceusingaP/Emultipleof17xagainstour2026-27averageEPSestimateofRMB3.9

RISKS

SunnyOpticalTechnologyGroupCoLtd

DownsideriskstoourtargetpriceforSunnyOpticalinclude:

•Stronger-than-expectedmarginpressureduetomemorypricehike

•Weaker-than-expectedAndroidphonemarket

•Slower-than-expectedpaceofADASpenetrationworldwideaswellasothertechnologicalimprovementforautocamera

•Slower-than-expectedAR/VRadoptionglobally

RATINGSDEFINITIONS,BENCHMARKSANDDISTRIBUTION

EQUITYRATINGSDEFINITIONS

Bernsteinbrand

TheBernsteinbrandratesstocksbasedonforecastsofrelativeperformanceforthenext12monthsversustheS&P500forstockslistedontheU.S.andCanadianexchanges,versustheBloombergEuropeDevelopedMarketsLargeandMidCapPriceReturnIndexEUR(EDME)forstockslistedontheEuropeanexchangesandemergingmarketsexchangesoutsideoftheAsiaPacificregion,versustheBloombergJapanLargeandMidCapPriceReturnIndexUSD(JPL)forstockslistedontheJapaneseexchanges,andversustheBloombergAsiaex-JapanLargeandMidCapPriceReturnIndex(ASIAX)forstockslistedontheAsian(ex-Japan)exchanges-unlessotherwisespecified.

TheBernsteinbrandhasthreecategoriesofratings:

•Outperform:Stockwilloutpacethemarketindexbymorethan15pp

•Market-Perform:Stockwillperforminlinewiththemarketindextowithin+/-15pp

•Underperform:Stockwilltrailtheperformanceofthemarketindexbymorethan15pp

CoverageSuspended:CoverageofacompanyundertheBernsteinresearchbrandhasbeensuspended.Ratingsandpricetargetsaresuspendedtemporarily,arenolongercurrent,andshouldthereforenotbereliedupon.

NotRated:Aratingassignedwhenthestockcannotbeaccuratelyvalued,ortheperformanceofthecompanyaccuratelypredicted,atthepresenttime.Thecoveringanalystmaycontinuetopublishresearchreportsonthecompanytoupdateinvestors

AlexWang,CFA+85221232613

alex.wang@

31March2026

ASIATECHHARDWAREBERNSTEINlsocIeTecENeRAlECROUP11

oneventsanddevelopments.

NotCovered(NC)denotescompaniesthatarenotundercoverage.

Bernsteinbrandstockratingsarebasedona12-monthtimehorizon.

Autonomousbrand–commonstocks

TheAutonomousbrandratescommonstocksasindicatedbelow.AsourbenchmarksweusetheBloombergEurope500BanksAndFinancialServicesIndex(BEBANKS)andBloombergEuropeDevMktFinancialsLargeandMidCapPriceRetIndexEUR(EDMFI)indexfordevelopedEuropeanbanksandPayments,theBloombergEurope500InsuranceIndex(BEINSUR)forEuropeaninsurer