SUNNY OPTICAL (02382.HK) Ebbs Persistently despite Positive Profit Alert, Last Dives ~4%

　　SUNNY OPTICAL (02382.HK) -3.050 (-6.321%) Short selling $99.31M; Ratio 19.010% issued a positive profit alert earlier and opened up 2.59% today. It peaked at $49.95 in early session but turned south later. It last printed at $46.45, down 3.73%, on volume of 9.2386 million shares and turnover of $441 million. The stock closed sharply higher by nearly 7% last Tuesday, but then fell off for four days in a row.

　　The Group was expected to record a profit for the six months ended 30 June 2024, amounting to approximately RMB1.048 billion to RMB1.092 billion, which represents an increase by approximately 140% to 150% as compared to the profit for the six months ended 30 June 2023.

　　Such expected increase in profit was primarily attributable to the recovery of smartphone market and improvement in product mix leading to a year-on-year increase in the shipment volume of handset lens sets and handset camera modules with the increasing average selling prices and improving gross margins.

　　Morgan Stanley expected the positive profit alert to have a positive reaction to the stock price. Investors were more concerned about the business outlook for the 2H24, including whether AI smartphones can drive the next product cycle. Morgan Stanley rated it Overweight with a target price of $59.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-19 16:25.)