Sunny update

We're not talking about weather of course.

BOCI says: Sunny Optical’s (2382.HK) 2H16 net profit surged 78% YoY to RMB809m, beating consensus by 7%. The company record an allowance for doubt debt of RMB137m in 2H16, which we guess is for Leshi Internet Information and Technology Corp (300104 CH/NR) . If we exclude the impact of this allowance, the adjusted normalised net profit would be RMB912m, beating consensus by 20% and in line with our higher-than-consensus estimate.

Sunny +2.1% at HK$58.60 at pre-open.