Sunny Optical (02382) saw its shares rise more than 5% in late trading. At the time of writing, the stock was up 5.28%, trading at HK$66.8 with a turnover of HK$659 million. The company reported its full-year results, showing revenue of approximately RMB 43.229 billion, a 12.9% year-on-year increase. Gross profit reached about RMB 8.516 billion, up 21.6%, while net profit surged 73.1% to around RMB 4.807 billion. The improvement in profitability was driven by the continued premiumization of smartphone lens and camera module products, as well as a higher contribution from the higher-margin automotive business. HSBC released a research note stating that while commercialization may take time, opportunities from new businesses are not fully reflected in the current share price. The forecasted 2026 price-to-earnings ratio stands at 15 times, which is attractive compared to its historical average of 24 times and the industry average of 19 times. The bank raised its target price for Sunny Optical from HK$84.3 to HK$86.9 and maintained a "Buy" rating.