CROSBY Research: Q-Tech (1478 HK/BUY): 1H24 positive profit alert on strong shipment growth and product mix enhancement

15 Jul 2024

Q-Tech issued positive profit alert and expected 1H24 net profit to surge by 400%-500% YoY to Rmb108.5mn-Rmb130.2mn. The significant increase in net profit is due to: 1) global smartphone sales rebounded and Q-Tech’s market share in major smartphone brands increased; 2) significant progress in new product lines included IoT and automotive camera module; 3) product mix kept improving, 32MP+ smartphone and other CCM shipment share reached 49.2% in 1H24; and 3) a significant YoY decrease in loss of an associate company.