Investment Rating - The report maintains a "Buy" rating for Q-Tech with a target price (TP) raised to HKD 6.47, reflecting a potential upside of 29.6% from the current price of HKD 4.99 [1][2][9]. Core Insights - Q-Tech has announced a positive profit warning for 1H24, projecting a net profit increase of 400-500% year-on-year, reaching between RMB 1.09 billion and RMB 1.3 billion. This aligns with the firm's and market's FY24E estimates of 29-34% and 40-47% growth, respectively [1][9]. - The optimistic outlook is driven by several factors, including increased market share in high-end Camera Module (CCM), growth in automotive and IoT CCM, improved utilization rates (UTR), and better profitability from joint ventures like Newmax [1][9]. - For 2H24E, the report anticipates further growth from the launch of flagship Android models, high-end specification upgrades, and recovery in automotive and IoT CCM segments, which are expected to enhance profitability [1][9]. Financial Summary - Revenue projections for FY24E are set at RMB 17.025 billion, with a year-on-year growth of 35.9%. For FY25E and FY26E, revenues are expected to reach RMB 17.593 billion and RMB 19.503 billion, respectively [2][5][7]. - The net profit for FY24E is projected at RMB 386 million, with significant increases expected in subsequent years, reaching RMB 536 million in FY25E and RMB 657 million in FY26E [2][5][7]. - Earnings per share (EPS) estimates have been revised upward by 2-12% for FY25-26E, reflecting stronger profitability and growth expectations [1][9]. Market Performance - Q-Tech's stock has shown strong performance, with a 1-month return of 41.8% and a 3-month return of 44.6%, indicating positive market sentiment [3]. - The stock's price-to-earnings (P/E) ratio is projected at 14.3x for FY24E and 10.3x for FY25E, suggesting that the stock is attractively valued compared to its earnings growth potential [2][9]. Outlook - The report highlights that the upcoming catalysts for Q-Tech include a recovery in shipment volumes, new product launches, and winning orders in non-smartphone CCM segments, which are expected to drive long-term revenue growth [1][9].
丘钛科技：盈利复苏刚刚开始 ； 将 TP 提高至 6.47 港元