Analyst Alex NG from CMB International Securities reiterated a Buy rating on Q Technology (Group) Co and decreased the price target to HK$13.18 from HK$14.50.
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Alex NG has given his Buy rating due to a combination of factors related to Q Technology’s earnings momentum and business mix transformation. He highlights that management’s profit alert for FY25 points to a several-fold surge in net income, materially ahead of previous expectations, supported by robust growth in non-mobile camera modules for IoT devices, automotive applications, and XR products, as well as gains from upgrading to higher-value camera and fingerprint technologies. Additional contributions from the disposal of the India business and the turnaround of Newmax further reinforce the earnings recovery outlook.
Alex also emphasizes that non-mobile segments are set to become the main growth engine over 2025–2027, with strong double-digit revenue expansion expected to lift their share of group sales to nearly half by 2027, offsetting weakness in smartphone-related demand. He views Q Technology’s vertical integration and solid global customer base as strategic advantages to capture structural opportunities in drones, handheld imaging devices, XR and AI glasses, and robotics. On valuation, the stock trades at what he considers attractive forward earnings multiples, and his new target price, based on a rolled-forward FY26 P/E assumption, provides sufficient upside to justify maintaining a Buy recommendation despite industry headwinds in smartphones.
NG covers the Technology sector, focusing on stocks such as BYD Electronic (International) Co, Xiaomi, and Q Technology (Group) Co. According to TipRanks, NG has an average return of 43.0% and a 62.14% success rate on recommended stocks.