Goldman Sachs has released a research report indicating that SUNNY OPTICAL (02382) is seeing its mobile phone camera modules shift toward a more premium positioning, which is driving revenue growth and gross margin expansion while also meeting the demands of brand clients.

The investment bank holds a favorable view on Sunny Optical's long-term potential in areas such as AI edge devices, AI/AR glasses, and sports/360-degree cameras, but citing a saturated smartphone market and currently reasonable valuation levels, the firm has raised its target price from HK$82.3 to HK$83.3.

The report highlights that Sunny Optical's first-half revenue increased 11% year-over-year, surpassing both the bank's and market forecasts. Gross margin came in broadly in line with expectations, while net profit grew 10% year-over-year, also exceeding analyst and market projections. This performance reflects the company's product mix upgrades, market share gains, and expansion of new product lines, which partially offset the impact of rising memory prices.

Goldman Sachs has raised its net profit forecasts for fiscal years 2026 and 2027 by 4% and 2%, respectively, to account for higher revenue and gross margin assumptions. Additionally, driven by increased contributions from XR, automotive, and optical instrument product segments, the firm has lifted its revenue projections for fiscal 2026 and 2027 by 4% and 1%, respectively.