Investment Rating - The report maintains an "Outperform" rating for Q Technology (01478) [1] Core Insights - Q Technology is expected to achieve a 435% year-on-year increase in net profit for 2025, which is at the high end of the profit forecast [1] - Adjusted net profit, excluding disposal gains, is projected to grow by 144% to 682 million RMB [1] - The shipment volume and revenue from non-mobile camera modules for 2025 are both expected to exceed company guidance, with strong growth anticipated to continue into 2026 [1] - Despite facing adverse industry factors, the company expects mobile camera module shipments to increase by over 5% year-on-year [1] Summary by Relevant Sections - **Profit Forecast**: Q Technology's net profit is forecasted to grow significantly, with a 435% increase expected for 2025, aligning with the upper range of profit predictions [1] - **Adjusted Profit**: The adjusted net profit, after excluding one-time gains, is anticipated to reach 682 million RMB, reflecting a substantial 144% growth year-on-year [1] - **Product Performance**: The company is projecting higher-than-guided shipment volumes and revenues for non-mobile camera modules, indicating robust performance and growth potential into 2026 [1] - **Market Outlook**: The company remains optimistic about the mobile camera module market, forecasting a shipment increase of over 5% despite industry challenges [1]

Investment Rating - The report maintains a "Buy" rating for Q Technology (01478.HK) with a target price of 15 HKD based on a 15x P/E for 2026 estimates [3][5]. Core Insights - Q Technology reported a revenue of approximately 20.9 billion RMB for the fiscal year 2025, representing a year-on-year growth of 29%. The gross profit margin for the year reached 7.8%, an increase of 1.7 percentage points year-on-year [1]. - The net profit for 2025 was approximately 1.49 billion RMB, which included a tax-adjusted gain of about 810 million RMB from the disposal of part of its stake in India. Excluding this one-time gain, the adjusted net profit was around 680 million RMB, with an adjusted net profit margin of 3.3% [1]. - In the mobile camera module (CCM) segment, Q Technology faced storage price pressures but managed to achieve a 3% year-on-year growth in sales volume for mobile camera modules in 2025. The company expects a sales volume growth of no less than 5% in 2026 [1]. - The non-mobile CCM segment saw significant growth, with a 111% year-on-year increase in sales volume. Non-mobile products accounted for 26.9% of camera module revenue in 2025, up 14.3 percentage points year-on-year. The company anticipates a growth of no less than 50% in non-mobile camera module sales in 2026 [2]. Financial Summary - The projected revenues for Q Technology from 2026 to 2028 are estimated at 23 billion RMB, 26.5 billion RMB, and 30.5 billion RMB, respectively, with net profits of approximately 1.01 billion RMB, 1.26 billion RMB, and 1.54 billion RMB for the same years [3][4]. - The company’s gross profit margin is expected to improve from 7.8% in 2025 to 9.1% by 2028, while the net profit margin is projected to increase from 7.2% in 2025 to 5.1% in 2028 [10][12].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 1 攝像頭模組產品銷售數量環比減少，主要是由於春節假期因素；而同比增 長，主要是由於海外客戶需求增加及供應份額持續上升。同時，其他領域攝 像頭模組產品的銷售情況繼續向好，本集團應用於物聯網(IoT)及智能汽車 領域的攝像頭模組銷售數量均同比大幅增長。 Q TECHNOLOGY (GROUP) COMPANY LIMITED 丘鈦科技(集團)有限公 司 （於開曼群島註冊成立的有限公司） （股份代號：1478） 自願公告 本公告乃由丘鈦科技（集團）有限公司（「本公司」，連同其附屬公司統稱「本集 團」）自願作出。除另有指明者外，本公告所採用之產品銷售數量統計口徑與本 公司日期為二零二五年十一月十一日之公告一致。 本公司董事（「董事」）會（「董事會」）謹此宣佈，本集團及本公司之合營企業 Kunshan Q Tech Microelectronics (India) Private Limited（「印度丘鈦」） ...

Key Insights - The report highlights the competitive landscape in the AI sector during the Spring Festival, with major players like ByteDance, Alibaba, and Tencent achieving significant user engagement and interaction through their AI applications [1][8] - The report discusses the advancements in autonomous driving, including legislative support in the US and significant developments from companies like Tesla and Waymo, indicating a growing market for self-driving technology [2][9] - The US Supreme Court's ruling against the "reciprocal tariffs" imposed by the Trump administration is expected to impact trade dynamics significantly, affecting various sectors [3][10] Recent Key Events - ByteDance's AI model generated over 50 million new year avatars and achieved 19 billion interactions during the Spring Festival, showcasing its strong user engagement [1][8] - Alibaba's "Qianwen" app facilitated nearly 200 million orders during the holiday, with a notable user base of older adults successfully utilizing the service [1][8] - Tencent's user engagement metrics reached new highs, with over 50 million daily active users during the Spring Festival, reflecting the effectiveness of its promotional activities [1][8] Market Situation - The Hang Seng Index fell from 27,387 points at the end of January to 26,381 points by February 26, marking a decline of 3.7% [11] - The Hang Seng Technology Index experienced a more significant drop of 10.6% during the same period [11] - Net inflows from southbound trading reached 75.6 billion HKD in February, indicating a positive trend in capital movement [12] Current Investment Recommendations - Focus on growth-oriented real estate and energy companies such as Beike-W, China Qinfa, and Power Development, which are expected to perform well in the current market [21] - Consider companies benefiting from the adjustment of the Hong Kong Stock Connect, like Leshushi, which is positioned for growth in the African hygiene products market [21] - Internet companies like Alibaba and Tencent are recommended due to their advancements in AI and strong market positions [21] Company-Specific Insights - Beike-W (2423.HK) is positioned as a leader in the real estate brokerage sector, with expected net profits of 37.1 billion CNY in 2025, reflecting a growth trajectory despite market challenges [22][24] - China Qinfa (0866.HK) is transitioning away from coal operations in Shanxi and focusing on its growing Indonesian coal business, with projected profits of 6.1 billion CNY by 2026 [25][26] - Leshushi (2698.HK) is a leading player in the African hygiene products market, with a projected net profit growth of 18.5% in 2025, driven by increasing market penetration [35][36] - Alibaba (9988.HK) is enhancing its AI capabilities with the launch of the Qwen3.5 model, which is expected to drive significant revenue growth across its platforms [39][40] - Tencent (0700.HK) is experiencing strong growth in its gaming and advertising segments, with a projected revenue increase to 7,530 billion CNY by 2025 [44][46]

Core Viewpoint - Hillstone Technology (01478) experienced a stock increase of over 5%, currently trading at HKD 9.11 with a transaction volume of HKD 7.67 million [1] Sales Performance - In January 2026, the sales volume of mobile camera modules reached 41.48 million units, a decrease of 3.7% month-on-month but an increase of 19.5% year-on-year [1] - Total sales of camera modules amounted to 44.07 million units, reflecting a month-on-month decrease of 4.1% and a year-on-year increase of 22.8% [1] - Sales of fingerprint recognition modules totaled 19.74 million units, showing a month-on-month increase of 10% and a year-on-year increase of 18.4% [1] Market Demand and Growth - The year-on-year growth in camera module sales is attributed to increased demand from overseas customers and a continuous rise in market share [1] - Sales of camera modules for IoT and smart automotive applications have significantly increased year-on-year, indicating positive trends in these sectors [1] - The growth in fingerprint recognition module sales is driven by the rising penetration rate of ultrasonic fingerprint recognition modules and the impact of customer project cycles [1]

Core Viewpoint - Hillstone Technology (01478) has seen its stock price increase by 7.54% to HKD 9.27, with a trading volume of HKD 31.18 million, following the announcement of its camera module sales figures for January 2026 [5]. Group 1: Sales Performance - The sales volume of mobile camera modules reached 41.48 million units in January 2026, representing a month-on-month decrease of 3.7% but a year-on-year increase of 19.5% [5]. - Total sales of camera modules amounted to 44.07 million units, showing a month-on-month decrease of 4.1% and a year-on-year increase of 22.8% [5]. - Sales of fingerprint recognition modules totaled 19.74 million units, with a month-on-month increase of 10% and a year-on-year increase of 18.4% [5]. Group 2: Market Drivers - The year-on-year growth in camera module sales is attributed to increased demand from overseas customers and a continuous rise in market share [5]. - Sales of camera modules in other sectors, particularly in the Internet of Things (IoT) and smart automotive fields, have also shown significant year-on-year growth [5].

Core Viewpoint - Hillstone Technology (01478) experienced a stock increase of over 5%, reaching HKD 9.11 with a trading volume of HKD 7.67 million [1] Sales Performance - In January 2026, the sales volume of mobile camera modules was 41.48 million units, a decrease of 3.7% month-on-month but an increase of 19.5% year-on-year [1] - The total sales volume of camera modules was 44.07 million units, reflecting a month-on-month decrease of 4.1% and a year-on-year increase of 22.8% [1] - The sales volume of fingerprint recognition modules totaled 19.74 million units, showing a month-on-month increase of 10% and a year-on-year increase of 18.4% [1] Market Demand and Growth - The year-on-year growth in camera module sales is attributed to increased demand from overseas customers and a continuous rise in market share [1] - Sales of camera modules for IoT and smart automotive applications saw significant year-on-year growth [1] - The growth in fingerprint recognition module sales is driven by the increasing penetration rate of ultrasonic fingerprint recognition modules and the impact of customer project cycles [1]

Group 1 - Unisplendour plans to raise no more than 5.57 billion yuan through a private placement to acquire a 6.98% stake in H3C and for other projects [1] - Dawi Technology's Zhangbei data center project will not involve computing power leasing and is expected to have minimal revenue contribution in 2025 [2] - Kaixin Network's subsidiary signed a settlement agreement with Legend IP, which is expected to positively impact the company's profit by approximately 200 million yuan [3] Group 2 - Newray plans to acquire a 70% stake in PCB tool company Huilian Electronics for no more than 700 million yuan, enhancing its market position [4] - Shangwei New Materials' embodied intelligent robot business is still in the product development stage and has not yet generated revenue [5] - Lanshi Heavy Industry's deputy general manager is under investigation for suspected violations, but the company's operations remain unaffected [6] Group 3 - Tianji Technology is under investigation by the China Securities Regulatory Commission for suspected information disclosure violations, but its operations are normal [8] - Top Group expects a net profit decline of 3% to 13% in 2025, despite revenue growth of 8.08% to 14.10% [9] - Shoulu Hotel's subsidiary plans to invest 281 million yuan in a new hotel property project, expected to enhance its business scale and profitability [10] Group 4 - Pingzhi Information plans to raise no more than 1 billion yuan for the construction of a domestic intelligent computing center [11] - Dongfang Guoxin's Inner Mongolia intelligent computing center project has been partially completed, contributing a small revenue share [12] - Zhongwei Semiconductor intends to allocate 1 billion yuan of surplus fundraising for a new investment project [13] Group 5 - Guolin Technology plans to issue up to 16.5 million shares, which will increase its total share capital to 201 million shares [14] - Dabeinong reported a 22.71% year-on-year increase in pig sales in January [15] - Qiu Tai Technology sold 41.48 million mobile camera modules in January, a 19.5% year-on-year increase [19]

Core Viewpoint - Company reported a mixed performance in camera and fingerprint recognition module sales for January 2026, with overall growth in year-on-year comparisons but a decline in month-on-month figures [1] Camera Module Sales - Camera module sales reached 41.482 million units in January 2026, representing a month-on-month decrease of 3.7% but a year-on-year increase of 19.5% [1] - Total camera module sales amounted to 44.071 million units, showing a month-on-month decline of 4.1% and a year-on-year increase of 22.8% [1] - The year-on-year growth in camera module sales is attributed to increased demand from overseas customers and a rising market share [1] Fingerprint Recognition Module Sales - Fingerprint recognition module sales totaled 19.741 million units, with a month-on-month increase of 10% and a year-on-year increase of 18.4% [1] - The growth in fingerprint recognition module sales is driven by the increasing penetration rate of ultrasonic fingerprint recognition modules and the impact of customer project cycles [1] IoT and Smart Automotive Applications - Sales of camera modules for IoT and smart automotive applications showed significant year-on-year growth, indicating a positive trend in these sectors [1]

Core Viewpoint - Company reported a mixed performance in camera and fingerprint recognition module sales, with overall growth in year-on-year comparisons but a decline in month-on-month figures [1] Camera Module Sales - In January 2026, the sales volume of mobile camera modules reached 41.482 million units, representing a month-on-month decrease of 3.7% but a year-on-year increase of 19.5% [1] - Total sales of camera modules amounted to 44.071 million units, showing a month-on-month decline of 4.1% and a year-on-year increase of 22.8% [1] - The year-on-year growth in camera module sales is attributed to increased demand from overseas customers and a continuous rise in market share [1] - Sales of camera modules for IoT and smart automotive applications saw significant year-on-year growth [1] Fingerprint Recognition Module Sales - The total sales volume of fingerprint recognition modules reached 19.741 million units, with a month-on-month increase of 10% and a year-on-year increase of 18.4% [1] - The growth in fingerprint recognition module sales is primarily due to the increasing penetration rate of ultrasonic fingerprint recognition modules and the impact of customer project cycles [1]