Sunny Optical's handset lens shipment dropped 45%

Did the Samsung deal affect February figures?

According to Nomura, the major negative in Sunny Optical's February shipment is the 45% y-y decline in handset lens set shipment and the 29pp y-y decline in in-house lens set ratio.

Here's more:

Management indicated that it has freed up handset lens set capacity for Samsung’s factory qualification process; this has resulted in the decline of handset lens shipment in Feb. We expect handset lens volume will remain weak in March in order to prepare for the ramp-up of lens production for Samsung. 

If the order from Samsung arrives on schedule, investors should be expecting] strong lens shipment from the April number. We downgraded Sunny to NEUTRAL on 18 March because of our concerns on the escalating FY13F consensus EPS estimate on Sunny, which may hurt both management and investors if any small miss occurs during customer expansion.

We are currently closely watching the development in customer expansion, including Samsung and Leap Motion.