UOB Kay Hian keeps HKD 106 target for Sunny Optical stock

Published on 10/14/2026 at 04:14 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half revenue reached RMB 21.91 billion, up 11.50 percent year over year. Profit rose 9.90 percent to RMB 1.81 billion, sharpening Sunny Optical stock's earnings case.

Results and analyst target

UOB Kay Hian maintained a HKD 106.00 target on September 29, 2026.
First-half revenue rose 11.50 percent to RMB 21.91 billion.
Sunny Optical stock reached a market capitalization of HKD 63.3 billion on October 14, 2026.

Sunny Optical, optical components, first-half results, analyst target, HKEX, Illustration mit AI erstellt.

UOB Kay Hian kept its HKD 106.00 target for Sunny Optical stock on September 29, 2026, while maintaining its BUY rating. The note came after the company's first-half results, which showed revenue growth but continued pressure in handset products.

Three dated earnings signals

On August 26, 2026, Sunny Optical announced interim results with first-half revenue of RMB 21.91 billion, up 11.50 percent year over year, according to Sunny Optical.

Its September 21, 2026 interim report recorded net profit attributable to owners of RMB 1.81 billion, an increase of 9.90 percent, while gross profit rose 9.60 percent to RMB 4.27 billion, according to FilingReader.

On September 29, 2026, UOB Kay Hian maintained a BUY rating and the HKD 106.00 target, valuing the shares at 21.10 times projected 2027 earnings.

What drives the next phase?

The earnings mix is shifting toward newer optical applications. In the first half of 2026, vehicle-product revenue rose 10.60 percent to RMB 3.76 billion, XR revenue increased 11.00 percent to RMB 955.70 million, and other-product revenue jumped 88.50 percent to RMB 4.04 billion, according to FilingReader.

Handset-product revenue fell 0.80 percent to RMB 13.15 billion in the same period. UOB Kay Hian said management was targeting flattish handset revenue growth for 2026 and 2027, with share gains and product upgrades offsetting lower smartphone volumes.

HKEX price and valuation

Sunny Optical was last at HKD 58.95 on HKEX on October 14, 2026 at 9:58 a.m. HKT. Its market capitalization was HKD 63.3 billion on the same date, while the 52-week range was HKD 51.50 to HKD 91.40.

The valuation gap behind UOB Kay Hian's target is substantial, but the earnings path depends on whether vehicle, XR and other products can offset handset weakness. The reported 19.50 percent first-half gross margin also leaves execution important as newer businesses scale.