HK Stock Market Move | Q TECH (01478) rises by over 6% again, with full-year net profit expected to increase by up to 2.8 times. The improvement in profitability of the mobile camera module is expected to continue.

Q TECH (01478) rose by over 6% again, up 5.4% to 7.22 Hong Kong dollars as of the time of writing, with a turnover of 39.7556 million Hong Kong dollars. On the news front, Q TECH previously announced a profit alert, expecting a comprehensive profit for the fiscal year 2024 to increase by approximately 200% to 280% from 83.531 million yuan in 2023. In addition, Q TECH disclosed that on January 9, the Indian subsidiary Chi Tai received a correction order from the tax department, reducing the total amount of tax and interest by about 503 million Indian rupees (approximately 42.85 million yuan), and the adjusted total amount payable was 1.295 billion Indian rupees (approximately 110 million yuan). Citigroup stated that Chi Tai's profit alert of 2.84 billion yuan was 3% higher than the bank's and market's expectations of 2.77 billion yuan. CICC, on the other hand, believes that optical may still be the main entry point for smartphone innovation in 2025, and is optimistic about the continued improvement in profitability trend of smartphone camera modules. As for fingerprint recognition modules, the gross profit margin is still in a loss state in 1H24, but with an increase in shipments of higher-end ultrasonic modules, the gross profit margin of fingerprint recognition modules in 2H24 and 2025 is expected to continue to recover and even reverse the loss.