Q-TECH(1478.HK)：1H25 NON-MOBILE AND GPM BEAT; FY25E GUIDANCE RAISED ON DRONE/AUTO/XR MOMENTUM

Core Viewpoint - Q-Tech's 1H25 net profit growth of 168% YoY aligns with profit alert, driven by stronger CCM ASP (+27% YoY), improved non-mobile sales mix, and Newmax's earnings turnaround [1][2]. Group 1: Financial Performance - Q-Tech's 1H25 revenue increased by 15% YoY, exceeding market expectations by 5% and 8%, attributed to a better non-mobile sales mix and high-end mobile products [2]. - Gross profit margin (GPM) improved by 2.2 percentage points YoY to 7.4%, supported by high-end mobile CCM mix and recovery in FPM ASP/GPM [2]. - The company raised FY25E shipment guidance for non-mobile CCM growth to +60% YoY (previously +40%) and FPM growth to +30% YoY (previously +20%) [1][2]. Group 2: Market Outlook - Q-Tech is optimistic about non-mobile product launches, including drones and handheld devices, as well as auto shipment ramp-up and FPM share gains [1]. - Management maintains a positive outlook on OIS/periscope upgrades, new project wins in auto CCM, and advancements in IoT CCM [2]. - The company expects a 32MP+ CCM mix of 55%+ and periscope CCM growth of 100%+ YoY in FY25E [2]. Group 3: Valuation and Recommendations - The revised FY25-27E EPS forecasts are 29-30% above consensus, indicating strong earnings upgrade potential [3]. - Current valuation at 17.7x/14.8x FY25/26E P/E is considered attractive, especially in light of projected EPS growth of 187%/19% for FY25/26E [3]. - The recommendation to maintain a BUY rating reflects confidence in Q-Tech's market leadership and sales momentum, particularly in the non-mobile segment [3].