Investment Rating - The report assigns a "Buy" rating to Q Technology (1478 HK) with a target price of HKD 5 10, implying a 25 9% upside potential from the latest closing price [2][3] Core Views - Q Technology's revenue grew 40 1% YoY in 1H2024, driven by a 30 8% increase in camera module sales volume and improved ASP due to higher specifications [1] - Gross margin improved by 1 8 percentage points to 5 2% in 1H2024, though still below the historical 10% level, due to increased share with smartphone customers and higher proportion of premium products [1] - Net profit surged 431 2% YoY to RMB 115 million in 1H2024, within the previously guided range of 400%-500% growth [1] - The company exceeded its 2024 guidance with 32M+ CCM sales reaching 49 2% of total, non-smartphone CCM sales growing 100 4% YoY, and smartphone CCM sales increasing 29 6% YoY [2] Business Performance - Smartphone camera module shipments grew 30 8% YoY in 1H2024, with 32M+ CCM shipments up 72 1% and automotive/other CCM shipments surging 100 4% [1] - The proportion of 32M+ high-spec camera modules reached 49 2%, driving ASP improvement [1] - Automotive business made significant progress, benefiting from rapid development of smart driving systems that require 8-10 camera modules per vehicle [2] Financial Projections - Revenue is forecast to grow 13 7% in 2024 and 11 3% in 2025, reaching RMB 17 37 billion by 2026 [6] - Gross margin is expected to improve to 5 3% in 2024 and 6 5% by 2026 [6] - Net profit is projected to increase 212 9% in 2024 and 47 5% in 2026, with ROE improving from 1 7% in 2023 to 10 1% in 2026 [6] Valuation - The stock is valued at 20x 2024 and 14x 2025 estimated P/E [2] - The target price of HKD 5 10 represents a 25 9% upside from the current price of HKD 4 05 [3]
丘钛科技：收入增长毛利率提升，智能手机与车载领域齐发力