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Q Technology (Group) Co Ltd (HK:1478)
:1478
Hong Kong Market

Q Technology (Group) Co (1478) AI Stock Analysis

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HK

Q Technology (Group) Co

(1478)

Rating:65Neutral
Price Target:
HK$9.00
▲(9.36%Upside)
Q Technology's stock reflects a solid technical performance with strong upward momentum, though caution is advised due to overbought signals. Financial performance indicates growth potential but highlights the need for improvements in operational efficiency and liquidity management. The valuation suggests caution due to a high P/E ratio, balanced by an attractive dividend yield.
Positive Factors
Earnings
Earnings surged 168% driven by camera module ASP hike and recovery in fingerprint module shipments.
Financial Performance
FY24 earnings expected to jump by 200%-280% y/y, driven by market share gains and a shift to high-end camera modules.
Strategic Partnerships
Q-Tech has established partnerships with leading smart driving solution providers and global auto brands, enhancing its position as a core supplier in the market.
Negative Factors
Consumer Sentiment
Delay in the resumption of smartphone shipment growth due to prolonged weak consumer sentiment.
Smartphone Market
Delay in the resumption of smartphone shipment growth due to prolonged weak consumer sentiment.

Q Technology (Group) Co (1478) vs. iShares MSCI Hong Kong ETF (EWH)

Q Technology (Group) Co Business Overview & Revenue Model

Company DescriptionQ Technology (Group) Company Limited, an investment holding company, engages in the research and development, design, manufacture, and sale of camera and fingerprint recognition modules for mobile phones and other intelligent mobile terminals in the People's Republic of China and internationally. The company offers high-end and mid-range, dual/multiple, optical image stabilization, automotive, smart home, and 3D camera modules, as well as capacitive and optical under-screen fingerprint recognition modules for the branded smart phone and tablet PC, Internet of Things, smart vehicles, etc. It also trades in camera modules and fingerprint recognition modules. The company was founded in 2007 and is headquartered in Kunshan, the People's Republic of China. Q Technology (Group) Company Limited is a subsidiary of Q Technology Investment Inc.
How the Company Makes MoneyQ Technology (Group) Co. Ltd. generates revenue primarily through the sale of camera and fingerprint recognition modules to smartphone manufacturers. The company's key revenue streams include the sale of these modules, which are critical components in the production of smartphones, tablets, and other consumer electronics. Significant factors contributing to its earnings include its strong relationships with major smartphone manufacturers, technological expertise in module production, and its capacity to innovate and produce high-quality components. These partnerships and its ability to maintain a competitive edge in technology help drive its sales and profitability.

Q Technology (Group) Co Financial Statement Overview

Summary
The company shows promising revenue growth and improved net income. However, low profitability margins indicate a need for operational efficiency improvements. The balance sheet is stable with a healthy debt structure, but liquidity concerns are evident with zero reported operating and free cash flow.
Income Statement
70
Positive
Q Technology has demonstrated a notable improvement in revenue growth from 2023 to 2024 by 28.87%. Gross profit margin in 2024 was 6.10%, which is relatively low, indicating potential cost management issues. The net profit margin improved to 1.73% from the previous year, showcasing better profitability. However, EBIT and EBITDA margins are still moderate, at 4.02% and 4.68% respectively, suggesting room for operational efficiency improvements.
Balance Sheet
65
Positive
The debt-to-equity ratio decreased to 0.48, indicating a reduced reliance on debt financing. The return on equity (ROE) increased to 5.48%, highlighting improved profitability relative to shareholder equity. The equity ratio stands at 35.23%, indicating a stable capital structure, though there is potential risk from a high liability base.
Cash Flow
50
Neutral
The cash flow statement reveals challenges, with zero reported operating and free cash flow for 2024. This suggests potential liquidity issues or investment adjustments. The free cash flow to net income ratio could not be calculated due to missing free cash flow data, indicating difficulty in converting revenues into actual cash.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.15B12.53B13.76B18.66B17.40B
Gross Profit984.90M508.86M541.34M1.76B1.77B
EBITDA756.48M683.10M633.86M1.54B1.47B
Net Income279.07M81.92M171.15M862.98M840.11M
Balance Sheet
Total Assets14.45B14.94B12.29B13.05B11.40B
Cash, Cash Equivalents and Short-Term Investments2.92B3.82B3.04B1.79B2.08B
Total Debt2.45B4.39B2.64B1.79B1.31B
Total Liabilities9.36B10.11B7.52B8.34B7.62B
Stockholders Equity5.09B4.83B4.76B4.70B3.79B
Cash Flow
Free Cash Flow965.44M-378.78M1.05B1.60B3.60B
Operating Cash Flow965.44M-378.78M1.05B1.60B3.60B
Investing Cash Flow-1.04B366.72M-1.94B-880.47M-695.87M
Financing Cash Flow-1.37B1.55B468.48M-942.20M-1.31B

Q Technology (Group) Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.23
Price Trends
50DMA
6.89
Positive
100DMA
7.20
Positive
200DMA
6.34
Positive
Market Momentum
MACD
0.33
Negative
RSI
71.12
Negative
STOCH
81.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1478, the sentiment is Positive. The current price of 8.23 is above the 20-day moving average (MA) of 7.26, above the 50-day MA of 6.89, and above the 200-day MA of 6.34, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 81.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1478.

Q Technology (Group) Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
HK$9.79B32.245.64%1.22%26.76%237.96%
57
Neutral
$1.14B27.27-27.06%12.35%10.83%-5.57%
$9.03B15.3613.83%1.94%
$9.55B22.6811.45%0.87%
$432.72M10.423.20%1.28%
$670.57M13.308.79%2.88%
68
Neutral
HK$16.37B13.666.27%5.75%18.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1478
Q Technology (Group) Co
8.23
4.13
100.73%
BYDIF
BYD Electronic (International) Co
4.04
-0.86
-17.55%
SNPTF
Sunny Optical Technology (Group) Co
7.82
1.69
27.57%
TRUHF
Truly International Holdings
0.13
0.05
62.50%
VARXF
BOE Varitronix
0.84
0.23
37.70%
HK:6088
FIT Hon Teng Limited
2.31
-1.32
-36.36%

Q Technology (Group) Co Corporate Events

Q Technology Grants Share Options to Align Employee and Shareholder Interests
Jun 27, 2025

Q Technology (Group) Company Limited has announced the grant of share options to 700 eligible participants, allowing them to subscribe for a total of 14,688,000 ordinary shares. The share options are part of a scheme adopted by the company to align the interests of its employees with those of the company and its shareholders. The vesting of these options is contingent upon meeting specific corporate performance targets, which are designed to motivate and reward employees, reinforcing their commitment to the company’s long-term success.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$7.10 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.

Q Technology Announces Nomination Committee Change
Jun 20, 2025

Q Technology (Group) Company Limited has announced a change in the composition of its Nomination Committee to comply with the revised Corporate Governance Code effective from July 2025. Ms. Hui Hiu Ching, an independent non-executive director with extensive experience, has been appointed to the committee, enhancing the board’s diversity and expertise.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$7.10 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.

Q Technology Updates Board of Directors and Committee Roles
Jun 20, 2025

Q Technology (Group) Co has announced its updated board of directors and their roles, effective from June 20, 2025. The board includes a mix of executive and independent non-executive directors, with Mr. He Ningning as Chairman and Mr. Hu Sanmu as CEO. The announcement outlines the composition of four board committees, highlighting the leadership and membership roles of each director, which may influence the company’s governance and strategic decisions.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$7.10 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.

Q Technology Updates Nomination Committee Terms
Jun 20, 2025

Q Technology (Group) Company Limited has amended the terms of reference for its Nomination Committee, which was initially formed in 2014. The committee is composed mainly of independent non-executive directors and is responsible for reviewing the board’s structure and composition, identifying qualified individuals for board membership, assessing the independence of directors, and making recommendations on director appointments and succession planning. These changes aim to enhance corporate governance and ensure the board’s alignment with the company’s strategic goals.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$7.10 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.

Q Technology Reports Mixed Sales Performance in May 2025
Jun 9, 2025

Q Technology (Group) Co. reported a mixed performance in its sales volume for May 2025. While there was a year-on-year decrease in the total sales volume of camera modules, attributed to customer project cycles and a focus on high-end products, there was a significant increase in sales for camera modules used in IoT and smart vehicles. The fingerprint recognition modules saw a month-on-month decrease but experienced a substantial year-on-year increase, indicating market share gains in this segment. These shifts reflect the company’s strategic focus on expanding its presence in emerging technology fields.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.

Q Technology Expands Stake in poLight ASA to Enhance Optical Module Capabilities
Jun 5, 2025

Q Technology (Group) Co., Ltd. has completed a private placement with poLight ASA, a Norwegian company, acquiring approximately 32.97% of its shares, making it the largest single shareholder. This strategic partnership aims to leverage both companies’ technological strengths and expand Q Technology’s optical module applications into new markets, enhancing its industry presence and operational capabilities.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$7.10 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.

Q Technology Successfully Passes All Resolutions at AGM
May 23, 2025

Q Technology (Group) Company Limited announced that all proposed resolutions were approved at their Annual General Meeting held on May 23, 2025. The resolutions included the adoption of financial statements, approval of a final dividend, re-election of directors, and the appointment of Deloitte Touche Tohmatsu as the independent auditor. The approval of these resolutions indicates strong shareholder support and may positively impact the company’s governance and financial strategies.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.

Q Technology Reports April 2025 Sales Volume with Mixed Trends
May 9, 2025

Q Technology announced its sales volume for major products in April 2025, highlighting a month-on-month increase in camera modules sales due to seasonal factors, despite a year-on-year decline attributed to customer project cycles and strategic focus on high-end products. The fingerprint recognition modules saw a significant year-on-year sales increase, driven by market share gains, reflecting the company’s strengthened position in this segment.

Q Technology Eyes Acquisition of Micro Actuator Business
Apr 28, 2025

Q Technology’s controlling shareholder, QT Investment, has entered into a framework agreement with TDK Corporation to potentially acquire assets and business related to micro actuator solutions. This acquisition could enhance Q Technology’s capabilities in camera module actuators, subject to further due diligence and regulatory approvals. The company has not yet committed to the acquisition, and shareholders are advised to exercise caution.

Q Technology Announces 2025 AGM Agenda and Key Resolutions
Apr 22, 2025

Q Technology (Group) Company Limited has announced the details of its upcoming Annual General Meeting (AGM), scheduled for May 23, 2025, in Shenzhen, China. Key agenda items include the adoption of the company’s audited financial statements for 2024, approval of a final dividend, re-election of directors, and the appointment of Deloitte Touche Tohmatsu as the independent auditor. The meeting will also address authorizations for the board to manage director remuneration and issue additional shares, which could impact the company’s financial strategies and shareholder value.

Q Technology Proposes Change of Auditor to Deloitte
Apr 14, 2025

Q Technology (Group) Co. has announced a proposed change of auditor, transitioning from KPMG, which has served for over a decade, to Deloitte Touche Tohmatsu. This decision is driven by a desire for good corporate practice and cost control strategies. The change is set to be proposed at the 2025 AGM, with KPMG retiring upon the conclusion of the meeting. The Board and Audit Committee have confirmed there are no disagreements with KPMG and have expressed gratitude for its past services. Deloitte has been assessed and deemed competent by the Audit Committee, considering its industry knowledge, technical competence, and resources, making the transition favorable for the company and its shareholders.

Q Technology Reports Surge in March 2025 Sales Volumes
Apr 10, 2025

Q Technology announced a significant increase in the sales volume of its major products for March 2025, with camera modules experiencing a 28.2% month-on-month increase despite a year-on-year decline, attributed to a strategic focus on mid-to-high-end products. Fingerprint recognition modules saw a substantial year-on-year sales increase of 95.12%, driven by market share gains, highlighting the company’s strengthening position in this segment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025