HK Stock Market Move | Q TECH (01478) fell more than 7%, Citigroup said the company's net profit last year was lower than the bank's expectations.

Q TECH (01478) fell over 7%, with the stock surging over 14% yesterday. As of the time of writing, it dropped 7.05% to 9.5 Hong Kong dollars, with a trading volume of 97.8466 million Hong Kong dollars. On the news front, Citigroup released a research report stating that Q TECH is expected to increase its net profit for the full year by 4 to 4.5 times compared to the previous year, to 1.395 billion to 1.535 billion renminbi. The median figure is 12% lower than the bank's expectation of 1.663 billion renminbi but higher than market expectations. Strong growth is driven by the acceleration in the growth of non-mobile CCM lens modules in areas such as IoT and automotive, with a focus on high-end CCM lens modules and fingerprint modules driving a better product mix and gross margin. The sale of a 51.08% stake in QTitan India and improved joint venture operations are also contributing to growth. The bank notes that recent evaluations of QTitan reflect expectations of weakness in the smartphone market in the coming years, but it believes non-mobile business will continue to drive strong growth.