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Sunny Optical Technology (Group) Company Limited logo

Sunny Optical Technology (Group) Company Limited

0Z4I.L
55
Hardware, Equipment & Parts · Technology
Price
61.65 GBp
+2.45 (+4.14%)
Market Cap
£67.05B
Exchange
London Stock Exchange
Winston Score
55
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Dec 31, 2025
How the score breaks down
Quality
Mixed
Growth
Good
Cash Flow
Strong
Stability
Exceptional
Valuation
Strong
Dividends
Mixed

Winston Score History

The full picture

Sunny Optical Technology is a Chinese company that makes lenses and camera modules — the small optical parts that go inside smartphones, cars, and security cameras. Its main customers are large electronics manufacturers, including smartphone brands like Huawei and Xiaomi, as well as automakers adding cameras to their vehicles. It is one of the largest optical component makers in the world.

The company earns money by selling hardware — physical lenses, camera modules, and related parts — to manufacturers who build them into finished products. Sunny Optical operates primarily in China but supplies customers globally, and its scale gives it a cost advantage over smaller rivals. Its main growth driver is the rising number of cameras in cars, as vehicles increasingly use cameras for safety and self-driving features, but it also faces risk from slowing smartphone sales and intense price competition from other Chinese optical suppliers.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+19.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+80.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥3.2B/ year

Rising (+9% vs prior year)

7.5% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

39.4%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

¥28.8B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Sunny Optical Technology (Group) Company Limited is a rare growth stock that's already generating positive cash flow while growing at 19%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.09B (2021) → 1.09B (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
19.6%
Thin — 19.6% gross margin
Profit after running costs
Operating Margin
8.5%
Modest — 8.5% operating margin
Return on the money invested
ROCE
7.8%
Weak — 7.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+11.9%
Steady sales growth (+11.9% YoY)
Profit growth
EPS YoY
+69.8%
Earnings growing fast (+69.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
123%
Turns 123% of profit into real cash
Spare cash per sale
FCF Margin
6.4%
Modest free cash flow (6.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.51
Conservative — low debt load (0.51)
Covers its interest
Interest Cover
18.26x
Comfortably covers interest (18.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
12.4x
Attractive valuation — P/E 12.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+2.6
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
2.02%
Moderate income — 2.02% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-32.6%
Dividend cut (-32.6% YoY) — warning sign

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