HK Stock Market Move | Q TECH (01478) rose another 4%, Dixon acquires 51% stake in Indian Qubes Titanium, expected to promote rapid growth of Indian Qubes Titanium.

Q TECH (01478) rose by more than 4%, up 4.74% to HK$11.5 as of press time, with a trading volume of HK$60.1095 million. On the news front, Q TECH announced that its indirectly wholly-owned subsidiary in India, Qiutai, will collaborate with Indian electronic manufacturing services provider Dixon. Dixon has preliminarily agreed to acquire a total of 51% of the paid-up capital of Qiutai through share purchase and subscription, with a preliminary total consideration of 5.53 billion Indian rupees. This move aims to seize the potential growth in demand for smart terminal products in the Indian market, leverage Dixon's local advantages and market demand, and promote the rapid increase in CKH HOLDINGS market share in India. In addition, Q TECH recently reported better-than-expected earnings, with a projected mid-term net profit increase of 1.5 to 1.8 times year-on-year, with a median of 305 million yuan, exceeding market expectations by 20%, and reaching 54% of the bank's full-year forecast. Citi expects that the market will respond positively to the company's earnings, which will also have a positive impact on SUNNY OPTICAL, showing that even with a decrease in shipments, improving product mix can still bring potential profit growth. The company attributes the increase in profit mainly to the favorable push of growth and margin improvement of the mobile camera module product portfolio; the revenue growth and margin improvement of the fingerprint recognition module products, and the improved operating performance of its joint venture with Taiwan's New Giant Technology.