According to "The Big Banks," Bank of America Securities expects Sunny Optical's spin-off of its automotive business to accelerate expansion in the future and maintains a "Buy" rating

AASTOCKS
2026.01.06 04:08

The research report from Bank of America Securities indicates that Sunny Optical (02382.HK) has announced it is considering spinning off its automotive-related optical business for independent listing, including automotive lenses and modules, as well as other related products such as lidar and head-up displays. After the spin-off, the entity is expected to continue as a consolidated subsidiary of Sunny Optical. However, the company has not yet disclosed the future shareholding ratio.

The firm estimates that its automotive business will generate RMB 7.4 billion in revenue by 2025, accounting for 22% of total revenue. This proposed spin-off suggests that the pace of future expansion for the automotive business may accelerate, especially for camera modules, supported by orders from domestic and international customers; maintaining a "Buy" rating with a target price of HKD 104

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