17 May 2024

Q-Tech reported strong CCM shipment growth of 39.2% YoY in Apr to 41.6m units. With shipment in the first 4 months grew 28.6% YoY to 148.2m units, we believe its well on track to reach mgmt. guidance of 5% YoY CCM shipment growth in FY24. Over the past two consecutive months, Q-Tech’s CCM shipment has reached 91% of Sunny Optical’s (2382 HK, BUY) HCM shipment, a significant increase from the 64% and 55% recorded in Jan and Feb, respectively. (Fig. 5 and 6). Product mix kept improving in Apr with 32MP+ CCM shipment surged 78.3% YoY and accounted for 45.2% of total shipment, up from 41.1% in Mar.  Demand was driven by strong order flow for high-end CCM from Huawei, Vivo and Oppo. In 4M24, 32MP+ CCM shipment share reached 44.9%, on track to meet the guidance of 45% share in FY24.

CROSBY Research – Q-Tech (1478 HK/BUY): Strong shipment growth in Apr, product mix improvement on track