CM International: Raise Qiu Titanium Technology's target price to HK$14.5, optimistic about the potential growth of non-phone business.

CMB International released a research report indicating that Qiaoti Technology's net profit in the first half of the year grew by 168%, in line with the previous profit announcement. This was mainly attributed to the 27% increase in the average selling price of camera modules, the expansion of non-mobile business sales to 24%, and the improved performance of the affiliated company Xinju Technology. The management has raised the full-year shipment guidance, with the expected growth of non-mobile CCM increasing from over 40% to over 60%. CMB International is optimistic about Qiaoti's growth potential in non-mobile businesses such as drones, automotive, and XR, and expects collaboration with India's Dixon Group to offset the impact of uncertainty in US tariffs. Based on better-than-expected average selling prices and gross profit margins in the first half of the year, the bank has raised Qiaoti's earnings per share forecast for 2025 to 2027 by approximately 10% to 12%, with the target price raised from 13.21 Hong Kong dollars to 14.5 Hong Kong dollars, and reiterating a "buy" rating.