Core Viewpoint - Zhaoyin International reported that Q Technology (01478) achieved a net profit growth of 168% in the first half of the year, aligning with previous profit warnings, primarily driven by a 27% increase in average selling price of camera modules (CCM), a rise in non-mobile business sales proportion to 24%, and improved profitability from its associate company, New Giant Technology [1] Financial Performance - Q Technology's net profit increased by 168% in the first half of the year [1] - The average selling price of camera modules (CCM) rose by 27% [1] - Non-mobile business sales accounted for 24% of total sales [1] Earnings Forecast - Zhaoyin International raised Q Technology's earnings per share forecast for 2025 to 2027 by approximately 10% to 12% [1] - The target price for Q Technology was increased from HKD 13.21 to HKD 14.5 [1] - The "Buy" rating was reaffirmed by Zhaoyin International [1] Business Outlook - Management has raised the annual shipment guidance, with non-mobile CCM growth expectations increased from over 40% to over 60% [1] - Zhaoyin International expressed optimism about the growth potential in Q Technology's non-mobile businesses, including drones, automotive, and XR [1] - The collaboration with India's Dixon Group is expected to mitigate the impact of uncertainties related to U.S. tariffs [1]

Core Viewpoint - Zhaoyin International's research report indicates that Q Technology's net profit increased by 168% in the first half of the year, aligning with previous profit warnings, primarily benefiting from a 27% rise in average selling prices of camera modules (CCM) and an expansion of non-mobile business sales to 24% of total sales [1] Group 1 - Q Technology's management has raised its full-year shipment guidance, with the growth expectation for non-mobile CCM increased from over 40% to over 60% [1] - The report expresses optimism regarding the growth potential of Q Technology's non-mobile businesses, including drones, automotive, and XR [1] - Collaboration with India's Dixon Group is expected to mitigate the impact of uncertainties related to U.S. tariffs [1] Group 2 - Based on better-than-expected average selling prices and gross margins for the first half of the year, Zhaoyin International has raised its earnings per share forecast for Q Technology for 2025 to 2027 by approximately 10% to 12% [1] - The target price for Q Technology has been adjusted from HKD 13.21 to HKD 14.5, with a reiterated "Buy" rating [1]

Core Viewpoint - Hillstone Technology (01478) experienced a significant stock increase of over 11%, with a current price of 15.1 HKD and a trading volume of 179 million HKD, following the announcement of its strong financial performance for the first half of the year [1] Financial Performance - The company reported a revenue of 8.832 billion HKD for the first half of the year, representing a year-on-year growth of 15.1% [1] - Net profit reached 308 million HKD, marking a substantial year-on-year increase of 167.6% [1] - Earnings per share were reported at 0.26 HKD, and the company declared an interim dividend of 0.15 HKD, the first interim dividend since its listing [1] Growth Drivers - The increase in profit is attributed to steady growth in operating revenue, an improvement in gross margin year-on-year, and the turnaround of the joint venture, New Giant Technology, from loss to profit [1] - Multiple institutions have raised their target prices for the company, with CICC increasing its target price by 67% to 14.97 HKD, citing better-than-expected growth in non-mobile revenue and comprehensive long-term growth strategies [1] - Zhongyin International maintained a "Buy" rating and raised its target price from 11.6 HKD to 16.4 HKD, indicating confidence in the company's growth potential [1] Market Outlook - Zhuhai International expressed optimism regarding the upward revision of profit forecasts for the second half of 2025, believing that the market has underestimated Hillstone Technology's leadership and growth momentum in the non-mobile sector, particularly in drones and 360-degree cameras [1] - Overall, there is a sustained positive outlook for Hillstone Technology's growth potential in non-mobile businesses (drones, automotive, extended reality XR), with expectations of increased camera module shipments driven by the joint venture with India's Dixon Group amid uncertainties in U.S. tariffs [1]