Sunny Optical predicted to add lens capacities

As it eyes to capture dual cam driven market growth.

Sunny reported August shipment data on 11 Sep after market close. According to Jefferies, all three product lines recorded historical high numbers, thanks to new model launches and market share gain. 

Jefferies noticed Sunny completed handset lens capacity expansion earlier than expected. "We expect Sunny to further add lens capacities in 2017, to capture dual cam driven market expansion," it said.

Here's more from Jefferies:

Handset lens up 18.7% m-m or 95.5% y-y, finished capacity expansion earlier than expected: Sunny's August shipment reached 62mn units, indicating completion of original capacity expansion plan (to 60mn).

We believe Sunny will keep adding new capacities in 2017, in order to capture dual cam driven market expansion (17% CAGR in 2017-19E in our estimate) and deal with new entrants (like AAC). We expect more intense competitions will come in 2H18.

Handset camera module up 40.2% m-m or 21.6% y-y, largely outperformed peer Qtech: In comparison, Q-tech reported 14.1% m-m decline. This confirms Sunny's leading market share in major customers' dual cam models. We expect Sunny to maintain this momentum in Sep~Dec, thanks to Huawei, Oppo and Vivo's new flagship model launches.

*Photo from Sunny Optical website.