HK Stock Market Move | Q TECH (01478) fell more than 3% again as its first-half performance fell short of expectations. Goldman Sachs lowered the company's earnings forecast and target price.

Q TECH (01478) fell over 3% during trading today, and as of the time of writing, it was down 2.83%, priced at HKD 6.005, with a transaction volume of HKD 47.0959 million. In terms of news, Q TECH released its mid-term performance for 2026 yesterday. In the first half of the year, it achieved revenue of RMB 9.923 billion, an increase of 12.36% year-on-year; the profit attributable to equity holders of the company was RMB 276 million, a decrease of 10.49% year-on-year; the gross margin was approximately 6.6%, a year-on-year decline of about 0.8 percentage points; and it intends to declare an interim dividend of HKD 0.15 per share. Citigroup released a research report stating that Q TECH's first-half performance was below market expectations, primarily due to an unfavorable camera module product mix and low capacity utilization of fingerprint recognition modules, leading to weak gross margins, coupled with increased R&D expenses in the Internet of Things and high-end automotive products. Based on the company's performance and outlook for the first half of the year, it has lowered the earnings forecast for the company from 13% to 16% for 2026 to 2028, reducing the target price from HKD 9 to HKD 6.9, while maintaining a "Neutral" rating.