HK Stock Market Move | Q TECH (01478) falls more than 7%, Citigroup downgrades company rating and target price

Q TECH (01478) fell more than 7%, as of the time of publication, it fell 7.33%, closing at 8.47 Hong Kong dollars, with a turnover of 1.23 billion Hong Kong dollars. On the news front, Q TECH released its 2025 annual performance yesterday, with revenue of 20.877 billion yuan (RMB, same below), a year-on-year increase of 29.26%; the company's shareholders' profit should be 1.494 billion yuan, a year-on-year increase of 435.22%; in addition, the net profit after excluding the income from the QUTAI equity arrangement in India was 680 million yuan, a year-on-year increase of 144.4%. It is planned to distribute a final dividend of 40 Hong Kong cents per share. Citibank released a research report stating that Q TECH's performance last year met the previously announced forecasts. The bank lowered its earnings forecast per share for the company for 2026 to 2027 by 39% and 33%, respectively, to reflect the headwinds facing the smartphone business, partially offset by non-smartphone businesses. The target price was revised down from 12 Hong Kong dollars to 9 Hong Kong dollars, and the rating was downgraded from "buy" to "neutral."