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SUNNY OPTICAL(2382)
Analysis¡G
Sunny Optical Technology is comprehensively shifting its business focus from the ¡§old momentum¡¨ of traditional smartphone lenses to three major ¡§new cultivated growth curves¡¨ built around automotive optics, AI spatial computing, and optical communications. In the first growth curve of automotive optics, the Group leverages its full-stack R&D platform and partner ecosystem to develop a range of other automotive optical solutions, including LiDAR solutions, in-cabin projection display solutions, and intelligent vehicle lighting solutions. In 2025, relying on its ¡§high-precision transceiver-integrated AA technology¡¨ and ¡§ultra-small size transmitter chip matrix on-board chip packaging technology,¡¨ the Group achieved mass production of a long-range LiDAR transceiver-integrated module for a leading automaker. In addition, the Group collaborated with a top intelligent driving company to tackle the industry¡¦s first LiDAR + vision integrated project, successfully breaking through high-precision prism assembly and fixation technology for the transceiver module¡¦s optical engine. This significantly enhanced detection accuracy and brought brand-new technical solutions to the intelligent driving field. In January this year, the Group announced the spin-off of its vehicle-related optical business for independent listing, aiming to optimize management efficiency, directly introduce strategic investors, and accelerate global expansion.
In the second growth curve of XR and spatial computing, as leading customers successively release new products, the smart glasses market is experiencing rapid volume growth and entering a new stage of scaled development. The Group maintains deep strategic cooperation with globally renowned top-tier clients, and shipments of its smart glasses camera modules achieved high-speed growth in 2025 compared with the previous year, solidifying its industry-leading position. At the same time, leveraging its industry-leading process technology and supply chain integration capabilities, the Group successfully achieved mass production of large wide-angle polarizing beam splitter lens assemblies and developed enhanced reality (AR) lens products equipped with photochromic solutions. Furthermore, based on its vertical integration capabilities and miniaturized packaging process advantages, the Group further optimized the optical performance and structural design of its AR optical engine products, achieving mass production breakthroughs in smaller, lighter designs with superior color performance, continuing to lead the popularization of AR devices toward consumer-grade applications. In recent years, the Group completed a strategic share swap with Goertek Optical for approximately RMB 1.903 billion, becoming its second-largest shareholder. This move will deeply integrate the Group¡¦s wafer-level micro-nano optics and metasurface device technologies with Goertek¡¦s full-chain mass production capabilities, consolidating its leading global position in AI/AR glasses contract manufacturing and core modules.
In the third growth curve of optical communication CPO and robot vision, the Group has successfully migrated the nano-level precision manufacturing technology accumulated from smartphone lenses to computing power infrastructure, focusing on high-precision optical components in silicon photonics modules. It has resolved the core pain point of optical path alignment and coupling (where nano-level errors cause failure) and now possesses mass production capabilities for micro-lens arrays (MLA) and micro-prisms. In the area of robot vision (Pan-IoT), the Group has fully pivoted its instrumentation business toward ¡§microscopic vision intelligent agents.¡¨ Its robot vision modules have achieved explosive growth in lawnmower robots, warehouse logistics robots, and food robot systems, guiding IoT revenue to grow by no less than 60% year-on-year in 2026.(I do not hold the above stock.)
Strategy¡G
Buy-in Price: $77.50, Target Price: $86.00, Cut Loss Price: $73.50
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LYGEND RESOURCE(2245)
Analysis¡G
The Company is a nickel full industry chain company, with business covering nickel ore and nickel iron trade, smelting production, equipment manufacturing, and sales. In the field of nickel product trade, according to the Zhuoshi report, the company's nickel ore trade volume ranked fourth globally in 2020 and first in China. Since 2017, the Company has been involved in nickel cobalt smelting plants, including wet smelting and pyrometallurgy. The Company has fully utilized its resource advantages, forward-looking layout of the Indonesian industry, and taken the lead in realizing the production of wet smelting projects, with obvious first mover advantages. Starting from 2021, the production capacity of Indonesia's nickel HPAL project has gradually been implemented, and the performance has entered a period of high-speed growth. In 2025, the Company achieved full load operation of HPAL and full production of six production lines in RKEF Phase II, driving the annual revenue to RMB 40.24 billion (+37.7%), the net profit attributable to the parent company soared to RMB 2.86 billion (+61.1%), and the net profit margin increased to 11.8%, completing the upgrade from a nickel ore trader to a global core supplier of nickel smelting and new energy positive electrode materials. The Company has signed a 20-year long-term supply agreement with its Indonesian partner for laterite nickel ore, locking in the lowest purchase price from the Indonesian government to ensure the advantage of raw material costs and stable supply chain. It is not affected by the export ban in the Democratic Republic of Congo and can also benefit from the rise in nickel cobalt prices.
Strategy¡G
Buy-in Price: $14.43, Target Price: $16.80, Cut Loss Price: $13.00
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Foryou Group (002906.CH) - Second Growth Curve Gradually Becoming Clear
Company profileForyou Corporation was established in 1993 and is mainly engaged in the R&D, production and sales of automotive electronics and precision die-casting businesses. The Company's automotive electronics business mainly covers two core sectors, namely smart cockpit and advanced driver-assistance systems. Its precision die-casting business is centred on precision mould design and manufacturing technology, covering aluminium alloy, magnesium alloy and zinc alloy product lines. In addition, it actively explores and develops AI, robotics and other related businesses, including optical communication modules, AI high-speed connectors, robotics and other related component businesses. In 2025, the Company reported revenue of RMB13,048 million, up 28.46% yoy; net profit attributable to the parent company was RMB782 million, up 20.00% yoy. Investment SummaryQ1 Revenue Maintained High Growth
In Q1 2026, the Company reported revenue/net profit attributable to the parent company/net profit excluding non-recurring items of RMB3,096 million/RMB166 million/RMB159 million, respectively (RMB, the same below), up 24.37%/6.61%/5.89% yoy, respectively. Gross margin was 16.5%, down 1.7 ppts yoy. The slower profit growth compared with revenue growth was mainly due to factors such as price competition and rising raw material prices. The Company has established a raw material price linkage mechanism with most of its customers, and its operating results are expected to improve significantly from Q2. Automotive Electronics Business Continued to Grow, With Its Leading Position in Smart Cockpit Firmly EstablishedThe Company's automotive electronics business reported revenue of RMB9,675 million in 2025, up 27.25% yoy, accounting for 74.15% of total revenue. CAGR reached 35.66% from 2020 to 2025, maintaining high-quality growth. The Company has built a comprehensive product matrix and solution capabilities in the smart cockpit field. The market shares of HUD, in-vehicle wireless charging and other products continued to rank first in China, while the market shares of LCD instrument panels and central control screens rapidly rose to the forefront of the industry. The Company's customer structure continued to optimise, with a low dependence on any single customer, and the revenue contribution from some new energy vehicle makers and international automotive brands increased. Revenue from customers including Changan, BAIC, Xiaomi, Dongfeng, STELLANTIS, SAIC Volkswagen, BYD, Xpeng, NIO and Leapmotor increased significantly. Leveraging the ADAYO Automotive Open Platform (AAOP), the Company provides customers with "one-stop" overall smart cockpit solutions based on its implementation capabilities in cockpit domain controllers across multiple platforms including Qualcomm, SemiDrive and MediaTek, as well as mainstream large models, demonstrating significant platform-based competitive advantages. Precision Die-Casting Business Improved Its Process Technologies, Enhancing Overall CompetitivenessThe Company overcame a number of difficult technical challenges in mould design and manufacturing, expanded the application of highly flame-retardant magnesium alloy materials, and promoted the deep integration of 3D vision guidance with AI and robotics to improve the flexible changeover capability of automated manufacturing cells. Its capabilities in complex and difficult production processes, including high-vacuum combined extrusion, friction stir welding of aluminium-magnesium alloys, profiling spraying, multi-spindle machining and vacuum adsorption, continued to improve. The precision die-casting business delivered particularly impressive performance in 2025, reporting revenue of RMB2,859 million, up 38.47% yoy, with growth exceeding that of the automotive electronics business. CAGR reached 35.08% from 2020 to 2025. Second Growth Curve Gradually Becoming Clear, with Capacity Expansion Releasing Growth MomentumThe Company actively explores non-automotive businesses such as AI and robotics: 1) In the AI infrastructure field, optical communication modules, high-speed connectors and data centre cooling system components have secured project nominations; 2) In the robotics field, the Company has received orders for robotics display screens and joint module components, and jointly developed robotics main and auxiliary controllers, with brand momentum surging and sales increasing exponentially. Following a record-high scale of capacity construction in 2025, capital expenditure is expected to remain at a high level in 2026, focusing on the Thailand Production Base, the expansion of the Automotive Electronics Huizhou Base, the expansion of the zinc alloy die-casting business in the AI field, and Phase III of the Precision Die-Casting Changxing Project. Capacity expansion is being carried out based on orders on hand, providing solid support for sustained business growth going forward. Among them, the Thailand Production Base is expected to commence production in Q4 2026, providing strong support for overseas business expansion. Investment ThesisThe Company's traditional automotive business is growing steadily and rapidly, while its non-automotive business offers enormous growth potential. We are optimistic about the long-term development of the Company and expect EPS to be 1.81/2.18/2.63 yuan respectively for 2026/2027/2028, a yoy increase of 22%/21%/21%. We offer a target price of 36.3 yuan, respectively 20/16.6/13.8x P/E for 2026/2027/2028, and an "Buy" rating. (Closing price as at 5 June) Historical P/E Band 
Source: Wind, Company, Phillip Securities Hong Kong Research
RiskProgress of new production line is below expectations
Electric vehicle sales fall short of expectations
Macroeconomic downturn affects product demand
Sharply rising raw material prices or sharply falling product prices Financials
(Closing price as at 5 June) Download PDF Version
| Recommendation on 18-6-2026 | | Recommendation | BUY (Initiation) | | Price on Recommendation Date | $ 28.340 | | Suggested purchase price | N/A | | Target Price | $ 36.300 |
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