HK Stock Market Move | Q TECH (01478) up more than 7%, company profit exceeds market expectations by 3%, mobile camera module profit improvement expected to continue.

Q TECH (01478) rose more than 7%, up 7.11% as of the time of writing, at HKD 6.18, with a turnover of HKD 21.4061 million. Citigroup released a research report stating that Q TECH has reported a profit increase, with an expected year-on-year profit growth of 2 to 2.8 times compared to last year. Based on a median of RMB 284 million, the company's profit increase is 3% higher than the bank's and market expectations of RMB 277 million, mainly due to the increase in market share of smartphone camera module (CCM) and ultrasonic fingerprint module (FPM); optimization of CCM product portfolio; improvement of FPM product portfolio leading to an increase in gross profit margin; improvement in capacity utilization; and reduction of investment losses in affiliated companies. CICC has released a research report pointing out that Q TECH has forecasted a 200% to 280% year-on-year increase in net profit for 2024, in line with market expectations. Looking ahead to 2025, the bank believes that optics may still be the main entry point for mobile phone micro innovations, and is optimistic about the continued improvement trend of profitability for smartphone camera modules. As for fingerprint recognition modules, the gross profit margin is still in a loss state in 1H24, but with the increase in shipments of higher-end ultrasonic modules, it is expected that the gross profit margin of fingerprint recognition modules in 2H24 and 2025 will continue to recover, or even turn around.