27 Mar 2024

After three consecutive declines of its semi-annual revenue, Q-Tech reported a turnaround of 2H23 revenue with 5.9% growth to Rmb7,054m. 2H23 total CCM shipment decreased 3.1% YoY to 204.1m units with ASP increased 11.9% YoY to Rmb32.2 due to increasing mix of 32MP+ CCM shipment. FPM shipment decreased 2.0% YoY in 2H23 with ASP plunged 23.1% YoY to Rmb6.5. 2H23 GPM bottomed out with 2.1ppt YoY increment to 4.5% thanks to product mix improvement, but partially offset by RMB depreciation which led to an increase in raw material cost. 2H23 net profit surged over 11x YoY to Rmb61.1m. FY23 net profit declined 52.1% YoY to Rmb81.9m, which is below the lower-end of profit alert of 35%-45% YoY net profit drop. The company recommended no dividend in FY23, same as last year.

CROSBY Research – Q-Tech (1478 HK/BUY): Revenue growth turned around and GPM bottomed out in 2H23; expect product mix improvement persist into FY24