Sunny Optical Technology (Group) (SOTGY) AI Stock Analysis

• Market Cap: $12.10B
• Dividend Yield: 0.64%
• Average Volume (3M): 215.00
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.20
• Revenue Growth: 7.93%
• EPS Growth: 88.47%
• Country: US
• Employees: 33,884
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.09
• Shares Outstanding: 109,480,480
• 10 Day Avg. Volume: 214
• 30 Day Avg. Volume: 215
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.94
• Enterprise Value/Ebitda: 3.44
• 1Y Price Target: $106.00
• Price Target Upside: -1.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $106.00 ▼(-1.22% Downside)

Sunny Optical Technology's overall stock score reflects its strong financial performance and positive technical indicators, making it an attractive prospect. However, the relatively high P/E ratio suggests caution regarding valuation. The absence of earnings call and corporate event data means these factors were not considered.

Sunny Optical Technology (Group) Business Overview & Revenue Model

Company Description

Sunny Optical Technology (Group) Company Limited, an investment holding company, engages in designing, researching, developing, manufacturing, and selling optical and optical related products, and scientific instruments. The company's Optical Components segment offers glass spherical and aspherical lenses, handset lens sets, vehicle lens sets, security surveillance lens sets, and other lens sets. Its Optoelectronic Products segment comprise handset camera modules, three dimensional optoelectronic products, vehicle modules, and other optoelectronic modules. The company's Optical Instruments segment includes microscopes and intelligent inspection equipment for testing. Its optoelectronic-related products are used in handsets, digital cameras, vehicle imaging and sensing systems, security surveillance systems, virtual reality/augmented reality, and robots, which are combined with optical, electronic, algorithm, and mechanical technologies. In addition, the company engages in the research and development of infrared and semiconductor technologies; trading of optical instruments and optoelectronics products; property leasing activities; and development, service, and consultation of technology; provision of financing services; and import and export agency services. It operates primarily in the People's Republic of China, rest of Asia, Europe, North America, and internationally. The company was founded in 1984 and is headquartered in Yuyao, China.

How the Company Makes Money

Sunny Optical generates revenue through multiple streams, primarily by manufacturing and selling optical components and modules. The company supplies a diverse range of products, including smartphone camera lenses, automotive lenses, and surveillance camera modules, which form the bulk of its revenue. Key revenue streams include direct sales to major electronics manufacturers and partnerships with leading technology companies, allowing it to secure long-term contracts and bulk orders. Additionally, its investments in research and development enable Sunny Optical to innovate and expand its product offerings, thus driving growth. The company also benefits from economies of scale due to its large production capacity and efficiency in operations, which contribute to its profitability.

Sunny Optical Technology (Group) Financial Statement Overview

Summary

Sunny Optical Technology demonstrates strong financial health with impressive revenue growth of 20.86% and solid profitability margins. The balance sheet indicates low financial leverage and efficient equity utilization, while cash flow management shows significant improvement. However, some volatility in non-operational cash flows should be monitored.

Income Statement

Sunny Optical has shown robust revenue growth, with a 20.86% increase from 2023 to 2024. The gross profit margin stands at 18.29%, and the net profit margin is 7.05%, reflecting solid profitability. Additionally, the EBIT margin is 6.56% and the EBITDA margin is 15.33%, indicating efficient operational performance. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.25, indicating low financial leverage. The return on equity is 10.90%, showcasing efficient utilization of equity. The equity ratio is 46.03%, reflecting a stable financial position. While the balance sheet is strong, the slight increase in total liabilities is a point to monitor.

Cash Flow

Sunny Optical's free cash flow grew significantly by 576.48% from 2023 to 2024, highlighting improved cash efficiency. The operating cash flow to net income ratio is 1.28, and the free cash flow to net income ratio is 0.44, indicating good cash conversion. Despite these positives, fluctuations in investing and financing cash flows suggest caution.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.29B	31.68B	33.20B	37.50B	38.00B
Gross Profit	7.01B	4.59B	6.60B	8.74B	8.70B
EBITDA	5.87B	2.59B	4.38B	6.76B	6.75B
Net Income	2.70B	1.10B	2.41B	4.99B	4.87B
Balance Sheet
Total Assets	53.81B	50.30B	43.00B	38.77B	35.44B
Cash, Cash Equivalents and Short-Term Investments	21.36B	21.51B	18.12B	15.04B	11.63B
Total Debt	6.14B	5.78B	6.44B	6.21B	6.11B
Total Liabilities	28.51B	27.42B	20.82B	17.88B	18.61B
Stockholders Equity	24.76B	22.42B	21.84B	20.59B	16.60B
Cash Flow
Free Cash Flow	1.19B	176.69M	4.33B	4.45B	4.48B
Operating Cash Flow	3.46B	2.66B	7.38B	6.98B	7.16B
Investing Cash Flow	-10.44B	-1.49B	-3.83B	-2.90B	-5.98B
Financing Cash Flow	-1.57B	4.86B	-2.16B	-1.24B	-222.25M

Sunny Optical Technology (Group) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOTGY, the sentiment is Positive. The current price of 107.31 is above the 20-day moving average (MA) of 104.52, above the 50-day MA of 100.42, and above the 200-day MA of 92.94, indicating a bullish trend. The MACD of 2.36 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 79.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOTGY.

Sunny Optical Technology (Group) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	80 Outperform	6.03B	24.23	10.13%	―	5.87%	20.66%
CGNX	77 Outperform	7.64B	64.98	8.10%	0.70%	10.14%	57.53%
LFUS	74 Outperform	6.44B	54.73	4.12%	1.10%	1.34%	-38.02%
MKSI	74 Outperform	8.32B	32.66	10.42%	0.71%	4.47%	2887.37%
SOTGY	73 Outperform	$12.10B	26.15	13.28%	0.64%	7.93%	88.47%
COHR	60 Neutral	16.60B	-200.26	0.61%	―	23.42%	71.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%