Q-Tech (1478 HK): 1H24 net profit in line, expect further product mix enhancement in 2H24

14/08/24

Q-Tech reported 1H24 revenue of Rmb7,675m, which surged 40.1% YoY. 1H24 total CCM shipment increased 30.2% YoY to 221.4m units with ASP increased 11.0% YoY to Rmb32.6. FPM shipment increased 16.7% YoY in 1H24 with ASP declined 14.3% YoY to Rmb6.7. 1H24 GPM widened 1.8ppt YoY to 5.2% on 1) product mix kept improving, 32MP+ smartphone and other CCM shipment share reached 49.2% in 1H24; and 2) a 30.2% YoY CCM shipment growth led to significant improvement in utilization rate. 1H24 net profit surged by 453.9% YoY to Rmb115.2m, which is in-line with the positive profit alert of 400%-500% YoY net profit increase.