Investment Rating - The report maintains a "BUY" rating for Q-Tech with a new target price (TP) of HK$6.47, up from the previous TP of HK$3.93, indicating a potential upside of 29.6% from the current price of HK$4.99 [5][14]. Core Insights - Q-Tech announced a positive profit alert for 1H24, projecting a net profit growth of 400-500% year-on-year, reaching RMB109-130 million, which aligns with 29-34% and 40-47% of the firm's and consensus FY24 estimates respectively [3][12]. - The growth is attributed to several factors including an increased share of high-end CCM, growth in auto/IoT CCM, rising UTR, and improved profitability from the associate Newmax [3][14]. - The outlook for 2H24 remains positive, driven by flagship model launches, high-end specification upgrades, and recovery in FPM, which are expected to enhance profitability [3][14]. Financial Summary - Revenue for FY24E is projected at RMB17,025 million, with a year-on-year growth of 35.9% [4][12]. - Net profit for FY24E is expected to be RMB386 million, reflecting a significant recovery from previous years [12][19]. - The report anticipates EPS growth of 372.7% for FY24E, with further increases in FY25E and FY26E [4][12]. Earnings Forecasts - The report raises FY25-26E EPS by 2-12% to account for stronger 1H24 earnings and improved gross profit margins [3][14]. - The gross profit margin is expected to recover to 7.5% in FY25E and 7.2% in FY26E, indicating a positive trend in profitability [12][19]. Market Position - Q-Tech is trading at attractive multiples of 14.3x and 10.3x FY24/25E P/E, suggesting a favorable valuation compared to its peers [3][14]. - The company is positioned to benefit from the recovery in the global smartphone market and increasing demand for non-mobile CCM applications, particularly in automotive and IoT sectors [3][14].

证券研究报告 | 公司点评 2024 年 07 月 11 日 丘钛科技(01478.HK) 中报盈喜,看好 CCM 高端化 7 月 10 日,丘钛科技发布盈喜报告。2024H1,丘钛科技归母综合溢利 可能较 2023H1 的 2169 万人民币增长约 400%-500%,绝对值大约为 1.08-1.30 亿人民币。盈利较好的主要原因包括:1)全球智能手机情况 好转、车载及物联网摄像头模组业务进步,使得摄像头模组销量同比增 长 30.8%,同时改善了稼动率;2)持续推进高端化,公司 32M 像素以 上的摄像头模组销量占比达到 49.2%,超出预期(年初指引的全年 32M 像素及以上摄像头销量占比为 45%以上);3)上半年一家联营公司经 营业绩改善,使得该部分亏损金额同比减少。 公司持续推进高端化进程,改善盈利性。1)产品规格方面,行业重回升 规升配正轨,公司也积极推进高像素、光学防抖、潜望式变焦、大芯片 等中高端摄像头模组的拓展。2)客户合作方面,公司积极供应手机客户 的高端手机产品线,我们预计公司今年仍将继续受益于高端旗舰手机产 品供应。总体上看,公司上半年 32M 像素以上的摄像头模组销量占比达 到 49 ...

CMB 国际全球市场 | 股票研究 | 公司更新 Q - Tech ( 1478 香港 ) CMBI Corp Day 外卖 : Android 恢复和规范升级推动 ASP / GPM 上升 我们于 6 月 26 日在 CMBI 技术公司日主持了 Q - tech 。主要收获包括 : 1 ) 智能手机 CCM : 管理。 在 Adroid 恢复,更高的 UTR 和更好的产品组合的推动下,FY24E 的 GPM 恢复是积极的 ; 2 ) 非智能 手机 CCM : 由于华为和海外一级客户的订单获胜,汽车 CCM 的加速增长 ; 3 ) FPM : 由于超声波 FPM 的采用增加和 ASP 的增加,利润崩溃在轨道上。总体而言,我们预计高端 Adroid 恢复和规格升级将 在 FY24E 提高 ASP / 收益。FY24 / 25E 市盈率为 11.9 倍 / 8.7 倍,我们认为该股仍然具有吸引力 ( 而 8 年期市盈率为 18 倍。avg) 。在审查 TP 的情况下保持买入。 智能手机 CCM : 由于 Android 恢复 , 高端规格升级和不断上升的 UTR / ASP , GPM 恢 复步入正轨。管理。重申 ...

CMB International Global Markets | Equity Research | Company Update Q-Tech (1478 HK) CMBI Corp Day takeaways: ASP/GPM upside driven by Android recovery and spec upgrade We hosted Q-tech at CMBI Technology Corporate Day on 26 Jun. Key takeaways include: 1) smartphone CCM: mgmt. is positive on GPM recovery in FY24E driven by Android recovery, higher UTR and better product mix and; 2) non-smartphone CCM: accelerated growth in auto CCM thanks to Huawei and overseas tier-1 customers' order wins; 3) FPM: profit b ...

Product Development and Market Focus - Q Technology reported a focus on mid-to-high end camera and fingerprint recognition modules for intelligent mobile terminals, including smartphones and IoT devices[7]. - The company has developed ultra-thin camera modules with resolutions of 200 mega pixels and above, and is one of the first manufacturers in the PRC to utilize COB and COF technologies[7]. - Q Technology's product range includes dual/multiple camera modules, optical image stabilization (OIS) modules, and various types of fingerprint recognition modules[7]. - The company aims to enhance its capabilities in optical designs, computational imaging, and system integration to become a leader in intelligent vision products[7]. - Q Technology is committed to large-scale intelligent manufacturing and vertical integration to stand out in the fast-growing camera module market[7]. - The company has a strategic focus on research and development of new technologies to drive future growth[7]. - Q Technology's automation equipment includes Automated Optical Inspection (AOI) technology, enhancing production efficiency[7]. - The company is expanding its market presence in smart vehicles and smart home applications[7]. - Q Technology's mission is to "illuminate machines," reflecting its commitment to innovation in intelligent vision technology[7]. Financial Performance - Revenue for 2023 was RMB 12,530,799 thousand, a decrease of 8.95% from RMB 13,759,170 thousand in 2022[12]. - Gross profit for 2023 was RMB 508,856 thousand, down from RMB 541,342 thousand in 2022, resulting in a gross profit margin of 4.1%[12][15]. - Profit for the year was RMB 83,531 thousand, compared to RMB 170,230 thousand in 2022, indicating a significant decline[12]. - Basic and diluted earnings per share for 2023 were both 6.9 RMB cents, down from 14.5 RMB cents in 2022[15]. - Total assets increased to RMB 14,942,750 thousand in 2023 from RMB 12,285,476 thousand in 2022[15]. - Total liabilities rose to RMB 10,110,999 thousand in 2023, up from RMB 7,518,071 thousand in 2022[15]. - The gearing ratio increased to 90.8% in 2023 from 55.4% in 2022, indicating higher financial leverage[15]. Market Trends and Economic Impact - Global smartphone shipment volume in 2023 was approximately 1.17 billion units, a year-on-year decrease of approximately 3.2%, affecting sales of camera modules[25]. - The shipment volume of augmented reality (AR) and virtual reality (VR) headsets was estimated to be 8.1 million units, representing a year-on-year decrease of 8.3%[28]. - China's GDP growth rate for the year was 5.2%, a recovery of 2.2 percentage points from the previous year, but total import and export of goods increased only by 0.2%[25]. - The global economic growth for the year was estimated at approximately 2.9%, lower than the previous year's expectation of 3.4%[25]. Sales and Revenue Insights - The sales volume of camera modules and fingerprint recognition modules applied to mobile phones declined by approximately 12.3% and 1.1% year-on-year, respectively[29]. - The average sales unit price of camera modules increased from approximately RMB 29.63 in the previous year to approximately RMB 30.95, with a significant rise in the second half of the year[31]. - Sales volume of IoT and automotive camera modules increased by approximately 15.4% compared to the previous year, with a significant rise in revenue proportion[32]. - The shipment proportion of mid-to-high-end camera modules reached approximately 41.6%, an increase of 11.6 percentage points from about 30.0% in 2022[31]. Operational Challenges and Adjustments - The Group's investment in an associate continued to operate unsatisfactorily during the year, with losses widening compared to the previous year[29]. - The Group's automotive camera modules business has made significant progress but is still in the investment and market development stage, affecting overall gross profit margin[54]. - The Group recorded a net cash outflow from operating activities of approximately RMB 378,783,000 in 2023, compared to a net cash inflow of approximately RMB 1,048,352,000 in 2022, primarily due to increased outstanding receivables and inventory[72][74]. Corporate Governance and Management - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors[102]. - The company emphasizes legal compliance and risk control in its operations, as highlighted by Mr. Fan's previous roles[105]. - The management team includes professionals with backgrounds in finance, engineering, and technology, enhancing the company's strategic capabilities[109][111]. - The company is committed to maintaining high standards of corporate governance and risk management practices[109]. Share Options and Employee Incentives - The Company granted a total of 89,561,600 share options under the Share Option Scheme to eligible participants during the year[172]. - The Share Option Scheme aims to motivate eligible participants to optimize their performance for the benefit of the Group[174]. - None of the share options granted under the Pre-IPO Share Option Scheme were exercised or lapsed during the year[171]. Environmental and Social Responsibility - The Group has implemented various internal regulations for environmental protection management, including Wastewater and Waste Gas Management Regulations[100]. - The Group's subsidiaries successfully obtained compliance certificates for work safety from local authorities, indicating adherence to environmental protection laws[100]. - The Group made charitable donations of approximately RMB 5,000 during the year[163].

11 Apr 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Q-Tech (1478 HK) 1Q24 shipment rebound on track; Auto & IoT as next growth drivers We recently spoke to Q-Tech's mgmt. and we maintain our positive view on high-end Android recovery to drive ASP/shipment upside in FY24E. Q-tech also expected GPM improvement in 1H24E thanks to better product mix and easing competition. For 1Q24, Q-Tech posted impressive growth of 23%/179% YoY in mobile/non-mobile CCM shipment, th ...

Financial Performance - The total revenue for Q Technology (Group) Company Limited for the year ended December 31, 2023, was approximately RMB 12,530,799,000, representing a decrease of about 8.9% compared to the previous year[2]. - The gross profit for the year was approximately RMB 508,856,000, a decrease of about 6.0%, with a gross margin of approximately 4.1% compared to 3.9% in the previous year[2]. - The net profit for the year was approximately RMB 83,531,000, a decrease of about 50.9% from RMB 170,230,000 in the previous year[2]. - Basic and diluted earnings per share for the year were both approximately RMB 0.069, down from RMB 0.145 in the previous year[4]. - The company's revenue from camera module sales in 2023 was RMB 11,561,664 thousand, a decrease of 7.95% from RMB 12,561,468 thousand in 2022[14]. - Revenue from fingerprint recognition module sales in 2023 was RMB 781,215 thousand, down 26.5% from RMB 1,063,578 thousand in 2022[14]. - The company reported a profit of RMB 448,910 thousand for the reporting segments in 2023, compared to RMB 481,727 thousand in 2022, reflecting a decrease of 6.8%[20]. - The company's profit before tax for the year ended December 31, 2023, was RMB 68,133,000, a decrease from RMB 107,084,000 in 2022[30]. - The company's gross profit for the camera module segment in 2023 was RMB 503,409 thousand, compared to RMB 524,798 thousand in 2022, indicating a decline in profitability[19]. - The group's profit for the year was approximately RMB 83,531,000, a decrease of about 50.9% from RMB 170,230,000 in 2022, mainly due to an 8.9% decline in operating revenue[63]. Revenue Breakdown - Total revenue for the company in 2023 was RMB 12,530,799 thousand, a decline of 8.93% compared to RMB 13,759,170 thousand in 2022[14]. - Revenue from external customers in 2023 reached RMB 12,530,799, a decrease of 8.93% compared to RMB 13,759,170 in 2022[22]. - Revenue from the mainland China market was RMB 9,972,395, down 13.78% from RMB 11,569,799 in the previous year[22]. - Sales of camera modules and fingerprint recognition modules for mobile phones decreased by approximately 12.3% and 1.1% year-on-year, respectively[44]. - The sales volume of camera modules for smartphones decreased by approximately 11.9% year-on-year due to a decline in global smartphone sales[2]. Assets and Liabilities - The total assets as of December 31, 2023, were approximately RMB 11,106,689,000, compared to RMB 8,594,138,000 in the previous year[6]. - The net current assets amounted to approximately RMB 1,440,207,000, an increase from RMB 1,344,729,000 in the previous year[6]. - Non-current liabilities totaled approximately RMB 444,517,000, compared to RMB 268,662,000 in the previous year[7]. - The total trade payables increased to RMB 5,437,031,000 in 2023 from RMB 4,584,043,000 in 2022, reflecting a significant rise in liabilities[40]. - The total bank borrowings as of December 31, 2023, amounted to RMB 4,370,999,000, an increase from RMB 2,615,977,000 in 2022[37]. Operational Highlights - The company experienced a significant increase in operating profit to approximately RMB 289,038,000, up from RMB 203,598,000 in the previous year[4]. - The company plans to continue focusing on the design, manufacturing, and sales of camera and fingerprint recognition modules as its primary business lines[18]. - The company aims to increase the sales proportion of camera modules with 32 million pixels and above to over 45% of total sales by 2024, up from approximately 40%[50]. - The company targets a year-on-year sales growth of no less than 50% for camera modules used in automotive and IoT sectors[50]. - The company has diversified its customer base, increasing the number of customers contributing over 10% of revenue from two in 2022 to three in 2023[14]. Market and Economic Outlook - The global smartphone shipment volume in 2023 was approximately 1.17 billion units, marking a year-on-year decline of about 3.2%[43]. - The global smartphone shipment volume is expected to rebound, with a projected 8.5% year-on-year growth in Q4 2023, reaching 326.1 million units[48]. - The high-end smartphone market (priced above $600) saw a market share increase of 3.7 percentage points to 27.4%[48]. - The demand for IoT smart home devices is anticipated to increase, with a projected shipment growth of 6.5% in 2024[48]. - The company aims to leverage opportunities in the AI sector, particularly in machine vision, to enhance the specifications and value of camera modules[48]. Compliance and Governance - The consolidated financial statements are prepared in accordance with all applicable International Financial Reporting Standards (IFRS) and comply with the disclosure requirements of the Hong Kong Stock Exchange[9]. - The company is committed to maintaining high standards of corporate governance and has adhered to the relevant codes throughout the year[81]. - The audit committee, consisting of three independent non-executive directors, has reviewed and agreed on the company's annual performance for the year ending December 31, 2023[82]. Future Plans and Strategies - The company plans to expand its market presence through an initial public offering (IPO) on the Shenzhen Stock Exchange[26]. - The company has implemented a strategy to enhance its product offerings and technological advancements in response to market demands[26]. - The company plans to continue advancing large-scale intelligent manufacturing and new technology research and development to enhance its competitive edge in the smart vision industry[50].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 3.76, indicating a potential upside of 20% from the current price of HKD 3.13 [1][40]. Core Insights - The global smartphone industry is showing signs of recovery, with a positive growth of 8% year-on-year in Q4 2023, following a prolonged period of decline due to slow technological innovation and extended replacement cycles [4][19]. - The integration of AI technology in smartphones is expected to revolutionize user interaction, creating new market opportunities. Major manufacturers like Samsung and others are already implementing AI features in their products, which is anticipated to drive industry growth [5][20][24]. - The company is focusing on high-end optical modules, which have shown significant revenue elasticity. The shipment of high-resolution camera modules is increasing, with a notable rise in the proportion of modules with 32 million pixels and above [6][33]. Summary by Sections Company Overview - The company, Q Technology (Group) Co., Ltd. (stock code 1478.HK), is a leading manufacturer of mid-to-high-end camera modules and fingerprint recognition modules for smart mobile devices, IoT, and smart automotive applications [14]. Global Smartphone Demand Recovery - The smartphone replacement cycle has extended from 2 years to over 3 years, but the aging of devices is driving an increase in replacement demand. The total global smartphone shipments for 2023 are estimated at 1.14 billion units, with a year-on-year decline of only 4% [4][18][19]. AI Technology Impact - AI is expected to enhance smartphone interaction significantly, with predictions that 5% of smartphone shipments will be AI-enabled by 2024, rising to 45% by 2027. This shift is anticipated to stimulate demand for new devices [5][28]. Company Focus on High-End Camera Modules - The company's camera module shipments for H1 2023 were 167 million units, down 20.8% year-on-year, but are expected to recover in H2 2023 with a smaller decline of 3.2%. The proportion of high-end modules is increasing, reaching 49% in early 2024 [6][32][33]. Financial Forecast and Valuation - Revenue projections for the company from 2023 to 2025 are RMB 12.46 billion (-9.5%), RMB 14.17 billion (+13.7%), and RMB 16.56 billion (+16.9%), with net profits expected to rebound significantly in 2024 [7][38].

智通财经APP获悉，丘钛科技(01478)午后涨超6%，截至发稿，涨5.43%，报3.3港元，成交额1246.59万 港元。 消息面上，丘钛科技公布，今年2月摄像头模组销售数量为2869.8万件，同比增长7.3%，主要是由于智 能手机市场需求回升，及集团于中高端摄像头模组产品及车载摄像头模组产品的业务发展良好；而销量 环比下降28.2%，则主要是由于春节假期因素。其中，手机摄像头模组销量为2,795.6万件，同比增加 6.1%，环比则跌28.2%。 招银国际此前发布研报称，将丘钛科技目标价从3.6港元上调4%至3.74港元，维持"买入"评级，认为该 股极具吸引力。集团1月出货量复苏强劲，超出预期。该行看好2024年上半年高阶智慧型手机需求复 苏；考虑到2023年盈警及出货量修复，将2024/25年财年每股盈利预测下调33及36%，预计分别年增 283%及39%。 ...

Financial Performance - Q Technology reported a revenue of approximately HKD 1.2 billion for the first half of 2023, representing a year-on-year increase of 15%[10]. - For the six months ended June 30, 2023, the Group's revenue was approximately RMB 5,476,543,000, representing a year-on-year decrease of approximately 22.8% compared to the corresponding period[19]. - The Group's revenue for the six months ended June 30, 2023, was RMB 5,476,543, representing a decline of 22.8% compared to RMB 7,094,787 in the same period of 2022[184]. - Revenue from camera modules for the six months ended June 30, 2023, was RMB 4,992,280, a decrease of 23.1% from RMB 6,502,418 in the same period of 2022[184]. - Revenue from fingerprint recognition modules for the six months ended June 30, 2023, was RMB 394,653, down 28.4% from RMB 550,701 in the same period of 2022[184]. - The Group's net profit decreased to approximately RMB 21,692,000, representing a year-on-year decline of about 86.9% due to decreased operating revenue and gross margin[22]. - Profit for the period was RMB 21,692, down 87.9% from RMB 165,530 in the same period last year[145]. - Gross profit for the same period was RMB 188,303, down 50.0% from RMB 375,830 in 2022[145]. Market Trends and Demand - User data showed that the demand for ultra-thin camera modules increased, with sales volume reaching 5 million units, a 20% increase compared to the previous year[10]. - The smartphone market experienced a decline for eight consecutive quarters, with global shipment volume of 265 million units, representing a decline of 7.8% compared to the second quarter of 2022[15]. - The management expects demand for camera modules and fingerprint recognition modules applied to smartphones to gradually recover as market conditions improve[15]. - The recovery in consumer purchasing power and confidence is anticipated to positively impact the sales of high-end mobile phones, facilitating upgrades in camera and fingerprint recognition modules[27]. - The smartphone industry is expected to see a recovery in growth by the end of 2023 and into 2024, with strong year-on-year growth in China's smartphone shipments reported in May[28]. Strategic Initiatives - Q Technology plans to invest HKD 200 million in R&D for new technologies, focusing on enhancing optical designs and computational imaging capabilities[10]. - The company aims to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2024[10]. - Q Technology is exploring potential acquisitions to enhance its product offerings and vertical integration in the supply chain[10]. - The Group aims to leverage favorable opportunities in the smartphone, IoT, and new energy vehicle markets in the second half of 2023[27]. - The Group aims to deepen partnerships with automobile brands to enhance product specifications and assist in developing customized intelligent driving systems[37]. Financial Position and Cash Flow - The Group's cash and cash equivalents were approximately RMB 2,616,261,000, an increase of approximately RMB 987,799,000 from approximately RMB 1,628,462,000 as of June 30, 2022[68]. - Net cash used in operating activities was approximately RMB 89,714,000, compared to a net inflow of approximately RMB 400,413,000 in the corresponding period, mainly due to a revenue decrease of approximately 22.8%[69]. - The net cash used in investing activities during the period amounted to approximately RMB 163,471,000, a significant decrease from RMB 1,101,008,000 in the corresponding period[71]. - The gearing ratio as of June 30, 2023, was approximately 41.1%, an increase of 21.4 percentage points from 19.7% as of June 30, 2022[72]. Operational Efficiency - The company achieved a gross profit margin of 25%, up from 22% in the same period last year, indicating improved operational efficiency[10]. - The gross profit margin for the Group was approximately 3.4%, a decrease of approximately 1.9 percentage points from approximately 5.3% in the corresponding period[21]. - The Group's total selling and distribution expenses were RMB 9,832, slightly higher than RMB 8,610 in 2022[145]. - R&D expenses decreased to approximately RMB 193,898,000, down by approximately 25.6% from approximately RMB 260,513,000 in the corresponding period, mainly due to improved R&D efficiency and reduced material requisition[54]. Share Options and Corporate Governance - The Company granted a total of 59,935,000 share options under the Pre-IPO Share Option Scheme, with none exercised or lapsed during the period[85]. - The Company has fully complied with the Corporate Governance Code during the period[133]. - An audit committee has been established, comprising three independent non-executive directors, to review the interim results and report for the period[133]. - The independent auditor, KPMG, reviewed the interim financial report for the six months ended June 30, 2023[133]. Economic Outlook - The International Monetary Fund (IMF) lowered its growth forecast for 2023 from approximately 2.9% to approximately 2.8% due to concerns about the global banking system and rising interest rates[14]. - The Chinese economy is expected to grow at a rate of 6% in the second half of 2023, with an average growth rate of around 5.7% for the entire year[25]. - Global sales volume of new energy vehicles is projected to reach 82.7 million units in 2023, a year-on-year increase of 3.8%, with sales in Mainland China expected to reach 8.5 million units, up 23%[27].