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Investing.com - HSBC downgraded OmniVision Group (603501:CH) from Buy to Hold and lowered its price target to RMB128.20 from RMB169.10, citing intensifying competition in the smartphone camera sensor market.
The Chinese image sensor manufacturer has underperformed the broader semiconductor sector, with its shares gaining only 4% since June 2025, compared to the Wind Semiconductor Index’s 23% rise during the same period.
HSBC identified specific competitive threats from domestic rivals, noting that SmartSens has secured design wins in Huawei’s Pura 80/Mate 80 series and Xiaomi’s Mi16 series with its SC5A5XS and SC595XS sensors, according to information from SmartSens’ June 2025 investor conference.
The downgrade reflects concerns about OmniVision’s high-end CMOS image sensor (CIS) business, with HSBC citing negative feedback on the company’s OV50K sensor due to high image noise levels in its lateral overflow integration capacitor technology, as well as insufficient R&D investment in large optical format sensors.
HSBC reduced its 2025-26 smartphone CIS revenue estimates for OmniVision by 19% and 25% respectively, concluding that the company’s expansion into wide-angle and telephoto products would be insufficient to counter the overall negative impact of market share losses.
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