Core Viewpoint - Q-tech preannounced a significant net profit growth of 150-180% YoY for 1H25, with a mid-point of RMB305 million, surpassing Bloomberg consensus by 20% and tracking 54% of the FY25E net profit estimate [1][2]. Financial Performance - For 1H25, Q-tech's estimated revenue and net profit growth were 7% and 162% YoY, respectively, driven by a 2% YoY increase in CCM (with non-mobile CCM up 97%) and a 100% YoY increase in FPM (with ultrasonic FPM up 20x) [2]. - The gross profit margin (GPM) improved to 7.1% in 1H25, compared to 5.2% in 1H24 and 6.9% in 2H24, attributed to HCM spec upgrades and higher-margin non-mobile CCM and ultrasonic FPM shipments [2]. Outlook - The outlook for 2H25 is positive, with expectations of continued strong momentum driven by high-end smartphone camera upgrades (OIS/periscope), IoT/auto CCM growth, and GPM recovery [2]. - Revenue and net profit are estimated to grow by 25% and 162% YoY in 2H25E, respectively, supported by a 23% mix of high-end HCM in 2H and an 85% revenue increase in IoT/auto [2]. Earnings Estimates - The company raised FY25-27E EPS estimates by 21-30%, reflecting strong 1H25 performance and improved GPM outlook for FY26/27E, with EPS now 14-19% above consensus [1][3]. - The new target price (TP) is set at HK$13.21, based on a higher 19.5x FY25E P/E, aligning with the 10-year historical average forward P/E, following sector re-rating and a stronger outlook for FY26-27E [1][3]. Investment Thesis - Q-tech is positioned to capture high-end smartphone camera upgrade demand and momentum in IoT/auto CCM modules, leading to a reiteration of the BUY rating [3].