OmniVision stock rating cut by HSBC on smartphone market share concerns

Published 26/08/2025, 07:02
OmniVision stock rating cut by HSBC on smartphone market share concerns

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.