Country Daily
China Automobile Sector Weekly/ Sunny Optical
Analyst
Top Stories
Sector Update | Automobile
China's mandatory L3/L4 standard raises entry barriers, favouring OEMs (Geely, BYD, XPeng), Tier 1 suppliers, and LiDAR makers. BYD's June sales rebounded to 245,000 (+26% mom). CATL's 1,000GWh capacity and AI cost cuts lead. Li Auto's L8 relaunch faces EREV/financial headwinds. Maintain MARKET WEIGHT. Top BUYs: CATL, BYD, Geely, Minth, Ganfeng. Top SELL: Li Auto.
Company Update | Sunny Optical (2382 HK/BUY/HK$75.90/Target: HK$125.80)
Sunny hosted its 2026 Investor Day, with AIDC optical interconnects dominating the agenda. Management highlighted its strategic entry into passive/active optical components and module integration, targeting small-scale mass production by 2027, underpinned by the Aishun Optoelectronics investment and the newly commissioned O-Film Lingang facility. Core businesses remain resilient, with automotive heading into L3 commercialisation, XR poised for rapid growth in 2-3 years, and the proportion of high-end smartphones continuing to expand. Maintain BUY and keep our target price at HK$125.80.
Technical Analysis
C&D International Investment Group | 1908 HK
Support levels: HK$12.37/HK$11.83
Resistance levels: HK$15.56/HK$16.60
WuXi Biologic| 2269 HK
Support levels: HK$30.60/HK$29.10
Resistance levels: HK$36.80/HK$40.54
Top Stories
Sector Update | Automobile
China's mandatory L3/L4 standard raises entry barriers, favouring OEMs (Geely, BYD, XPeng), Tier 1 suppliers, and LiDAR makers. BYD's June sales rebounded to 245,000 (+26% mom). CATL's 1,000GWh capacity and AI cost cuts lead. Li Auto's L8 relaunch faces EREV/financial headwinds. Maintain MARKET WEIGHT. Top BUYs: CATL, BYD, Geely, Minth, Ganfeng. Top SELL: Li Auto.
Company Update | Sunny Optical (2382 HK/BUY/HK$75.90/Target: HK$125.80)
Sunny hosted its 2026 Investor Day, with AIDC optical interconnects dominating the agenda. Management highlighted its strategic entry into passive/active optical components and module integration, targeting small-scale mass production by 2027, underpinned by the Aishun Optoelectronics investment and the newly commissioned O-Film Lingang facility. Core businesses remain resilient, with automotive heading into L3 commercialisation, XR poised for rapid growth in 2-3 years, and the proportion of high-end smartphones continuing to expand. Maintain BUY and keep our target price at HK$125.80.
Technical Analysis
C&D International Investment Group | 1908 HK
Support levels: HK$12.37/HK$11.83
Resistance levels: HK$15.56/HK$16.60
WuXi Biologic| 2269 HK
Support levels: HK$30.60/HK$29.10
Resistance levels: HK$36.80/HK$40.54
Analyst
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