Citi reiterates a "buy" rating on Q TECH (01478) with a target price of 7.1 Hong Kong dollars.

Citi released a research report stating that they have reiterated a "buy" rating on Q TECH (01478) with a target price of 7.1 Hong Kong dollars. The company announced a positive earnings surprise, with expected net profit to increase by 2 to 2.8 times compared to the previous year. The report mentioned that based on a median of 2.84 billion yuan, the company's earnings surprise of 2.84 billion yuan is 3% higher than the bank and market expectations of 2.77 billion yuan, mainly due to the increase in market share of mobile phone camera module (CCM) and ultrasonic fingerprint module (FPM); optimization of CCM product mix; improvement in FPM product mix leading to an increase in gross profit margin; improvement in production capacity utilization rate; and reduction in investment losses in affiliated companies.