Core Viewpoint - Hillstone Technology (01478) experienced a decline of over 5%, closing at HKD 9.07, with a trading volume of HKD 77.66 million [1] Group 1: Shipment Data - In December, the shipment of mobile camera modules increased by 13.2% month-on-month, with a total annual shipment of 435 million units, representing a year-on-year growth of 6%, outperforming Citigroup's previous estimate of a 3.2% decline [1] - The shipment of camera modules with 32 million pixels and above saw a month-on-month decrease of 0.9% and a year-on-year decline of 11%, resulting in an annual share of 48%, which is below the company's guidance of 55% [1] Group 2: Non-Mobile Camera Modules - The annual shipment of non-mobile camera modules grew significantly by 111% year-on-year, driven by strong performance in the automotive sector and robust demand in the Internet of Things (IoT), exceeding the company's guidance of 60% year-on-year growth [1] Group 3: Earnings Forecast Adjustments - Citigroup has lowered its shipment and gross margin assumptions for Hillstone Technology's mobile camera modules and fingerprint recognition modules for 2026, reflecting the impact of a weak smartphone market [1] - The earnings per share forecast for 2026 and 2027 has been reduced by 17% and 15%, respectively, but the company is still expected to achieve a net profit of over RMB 1 billion in 2026, driven by its non-mobile business [1]

Core Viewpoint - QiuTai Technology reported a decline in mobile camera module sales in September, indicating potential challenges in the market despite year-on-year growth [1] Group 1: Sales Performance - The sales volume of mobile camera modules in September was 43.603 million units, representing a month-on-month decrease of 8.9% [1] - Year-on-year, the sales volume increased by 40.5%, suggesting strong demand compared to the same period last year [1]