Q Technology (Group) Co (1478 – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Alex NG from CMB International Securities reiterated a Buy rating on the stock and has a HK$9.25 price target.
Alex NG has given his Buy rating due to a combination of factors, including the optimistic guidance for FY25 and the strategic improvements in Q Technology’s product offerings. The company has shown a promising shift in its product mix, particularly with the upgrades in optical image stabilization (OIS) and periscope camera modules, as well as a turnaround in fingerprint module (FPM) performance. This shift is expected to drive significant growth in the automotive and Internet of Things (IoT) sectors.
Furthermore, Q Technology’s FY24 earnings showed a substantial increase, aligning with previous profit alerts, and were driven by gains in market share and product specification upgrades. The management’s positive outlook for high-end camera module demand and the expansion into non-mobile markets, such as automotive and IoT, supports the expectation of continued growth. The company’s partnerships with leading smart driving solution providers and global auto brands further enhance its position in the market. These factors, combined with a favorable valuation compared to expected earnings growth, make the stock an attractive investment opportunity.
1478’s price has also changed dramatically for the past six months – from HK$4.250 to HK$8.630, which is a 103.06% increase.