Sunny Optical (2382 HK)'s Auto Ops Spin-Off Requires Greater Clarity
Sunny Optical Technology Group (2382 HK), a leading player in the global optical space, has announced an intention to spin-off and separate list its vehicle-related optical ops.
Sunny Optical is the world leader in car camera lenses used for parking and autonomous driving.
1H15 EBITDA growth was driven by this high-margin automotive segment. It accounted for ~17.5% of Sunny Optical’s top line in the first six months of 2025.
The Trade:
The muted market response today to this development is indicative.
Metrics for Sunny Optical are not outwardly inexpensive.
Investors need to weigh the uplift from the growing vehicle ops, against the expected holdco discount to be assigned to Sunny Optical, post spin-off.
The separate listing may not even take place.
Sunny Optical needs to provide greater financial data on the SpinCo to get a clearer picture.
The insight is still labelled bullish as I’m still not bearish here.
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