CMBC International: Expect non-mobile business of Q TECH (01478) to continue growing, lowering target price to HK$13.18.

China Merchants Securities International released a research report stating that the current valuation of Q TECH (01478) is attractive, reaffirming a "buy" rating; based on updated target P/E ratio, the target price has been lowered from HK$14.5 to HK$13.18. Q TECH has announced a profit increase, with expected year-on-year profit growth of 400% to 450% last year, exceeding the bank and market expectations. The growth is mainly driven by the increase in non-mobile business, upgrades in camera modules and fingerprint modules, disposal gains from the Indian business, and the turnaround from loss to profit in its subsidiary, New Invent Technology. The bank expects that non-mobile business will be the main growth driver, with a compound annual growth rate of 48% in revenue for the fiscal years 2025 to 2027, contributing 40% and 47% of total revenue in fiscal years 2026 and 2027 respectively, compared to 28% in fiscal year 2025.