Q Technology (01478.HK) 1H21 profits exceed expectations, Future upgrade logic remains unchanged September 10, 2021 307

PSR Recommendation: BUY Status: Upgraded
Target Price: HKDHKD21.20

Investment Summary
Q Technology announced the company’s interim results as of 30 June 2021. During the period,
the revenue was approximately RMB 9.336 billion (+6.1% yoy), the gross profit was
approximately RMB 1.083 billion (+47.9%), the gross profit margin was approximately 11.6%,
an increase of about 3.3 ppts compared with about 8.3% in the same period. The company’s
net profit was about RMB 571 million (+70.1% yoy), which was higher than the 40%-60%
guidance range of the company’s positive profit forecast. In addition, excluding the company’s
initiative to impair the goodwill of Newmax Technology and the asset restructuring costs
arising from the spon-off of Kunshan Q Technology China to A- share listing, the company’s
net profit will increase by 82.9% yoy. The company’s net profit growth was mainly attributable
to steady growth in the company’s camera module sales, continuous improvement of its
customer structure and the optimization of its camera module product structure.

About the author

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Samuel Sung

宋承軒先生 (Samuel Sung) 分析師 宋承軒先生本科畢業於香港科技大學數學系,以優異成績畢業於英國紐卡素大學獲取國際金融分析碩士學位。宋先生現為輝立証券持牌分析師,主要覆蓋TMT行業。 Samuel Sung graduated from Hong Kong University of Science and Technology with BSc in Mathematics and obtained Master’s Degree with distinction in International Financial Analysis from Newcastle University. Samuel is currently a licensed research analyst at Phillip Securities and covers the TMT sector.

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