In a report released today, Alex NG from CMB International Securities maintained a Buy rating on Q Technology (Group) Co, with a price target of HK$14.50.
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Alex NG has given his Buy rating due to a combination of factors that highlight Q Technology’s strong growth potential. The company’s impressive 168% year-over-year net profit increase in the first half of 2025 aligns with expectations, driven by a significant rise in average selling prices and a favorable shift in the sales mix towards non-mobile products. Additionally, the management’s upward revision of shipment guidance for non-mobile camera modules and fingerprint modules indicates robust demand in sectors like drones, automotive, and extended reality.
Furthermore, Q Technology’s strategic partnership with Dixon Group in India is expected to enhance shipment volumes, mitigating risks associated with US tariff uncertainties. The company’s earnings per share forecasts for 2025 to 2027 have been raised by 10-12%, reflecting a positive outlook on pricing and gross profit margins. Despite recent stock rallies, the current valuation remains attractive given the anticipated earnings growth, supporting the Buy recommendation.
NG covers the Technology sector, focusing on stocks such as Xiaomi, AAC Technologies Holdings, and Q Technology (Group) Co. According to TipRanks, NG has an average return of 48.2% and a 71.11% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$15.00 price target.