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

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HK:1478

Q Technology (Group) Co

(1478)

Rating:67Neutral
Price Target:
HK$12.50
▼(-7.68% Downside)
The stock score is primarily driven by strong technical momentum, counterbalanced by financial performance concerns, particularly in liquidity and valuation issues. The high P/E ratio and low dividend yield weigh down the overall attractiveness despite bullish momentum.
Positive Factors
Earnings
Q-Tech's FY24 earnings increased by 241% year-over-year, driven by share gains in CCM/FPM and an upgrade in specifications.
Guidance and Projections
FY25 shipment guidance raised: Non-handset CCM expected to grow by no less than 60% y/y (vs. 40% previously), FRM by no less than 30% y/y (previously 20%).
Strategic Partnerships
Q-Tech has established partnerships with leading smart driving solution providers and global auto brands, becoming a core supplier for drone and action camera brands.
Negative Factors
Competition
More aggressive-than-expected competition, causing ASP pressure in new product markets such as automotive and IoT.
Market Risks
Q-Tech’s India business with Dixon Group is expected to boost CCM shipment amid US tariff uncertainties.
Pricing Pressure
Sustainable recovery in end-market demand, with lower pressure on average selling prices (ASP) for camera modules.

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

Q Technology (Group) Co Business Overview & Revenue Model

Company DescriptionQ Technology (Group) Co., Ltd. is a China-based company primarily engaged in the research, development, manufacture, and sale of camera modules and fingerprint recognition modules. Operating in the consumer electronics sector, the company provides advanced optical components and solutions primarily for smartphones, tablets, and other mobile devices. Q Technology is known for its innovative approach to integrating cutting-edge technology into its product offerings, catering to the increasing demand for enhanced mobile device functionality and user experience.
How the Company Makes MoneyQ Technology (Group) Co., Ltd. generates revenue primarily through the sale of its camera and fingerprint recognition modules to major mobile device manufacturers. The company's revenue streams are significantly influenced by its ability to maintain and expand partnerships with leading smartphone brands that rely on its high-quality components to enhance their product offerings. By leveraging its R&D capabilities, Q Technology continually develops advanced technologies that attract new customers and retain existing ones. The company also benefits from economies of scale, as increased production volumes drive down costs, thereby improving profit margins. Additionally, Q Technology's focus on innovation ensures a competitive edge, enabling it to capture a larger share of the growing market for optical and biometric components in consumer electronics.

Q Technology (Group) Co Financial Statement Overview

Summary
Q Technology exhibits promising revenue growth and improved net income. However, operational efficiency improvements are needed due to moderate profitability margins. The balance sheet is stable with a healthy debt structure, but liquidity concerns from the cash flow statement need addressing.
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 Price13.54
Price Trends
50DMA
9.59
Positive
100DMA
8.25
Positive
200DMA
7.31
Positive
Market Momentum
MACD
0.96
Negative
RSI
80.39
Negative
STOCH
78.51
Neutral
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 13.54 is above the 20-day moving average (MA) of 11.90, above the 50-day MA of 9.59, and above the 200-day MA of 7.31, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 80.39 is Negative, neither overbought nor oversold. The STOCH value of 78.51 is Neutral, 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
78
Outperform
$5.17B13.168.79%2.57%24.98%-17.75%
72
Outperform
$84.60B28.7911.45%0.69%18.80%142.93%
71
Outperform
HK$27.07B22.596.27%5.75%18.75%
71
Outperform
$89.32B19.3113.83%1.56%34.21%4.11%
67
Neutral
HK$16.11B31.559.13%0.74%17.21%166.36%
62
Neutral
$3.80B12.973.20%8.06%14.45%15.04%
57
Neutral
HK$14.39B9.80-0.60%4.57%7.08%-37.99%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1478
Q Technology (Group) Co
13.54
8.90
191.81%
HK:6088
FIT Hon Teng Limited
4.27
2.06
93.21%
HK:2382
Sunny Optical Technology (Group) Co
77.45
33.04
74.41%
HK:0732
Truly International Holdings
1.24
0.32
35.08%
HK:0710
BOE Varitronix
6.62
2.68
67.89%
HK:0285
BYD Electronic (International) Co
39.64
10.75
37.21%

Q Technology (Group) Co Corporate Events

Q Technology Announces Interim Dividend for 2025
Aug 11, 2025

Q Technology (Group) Company Limited has announced an interim dividend of HKD 0.15 per share for the six months ending June 30, 2025. This announcement reflects the company’s financial performance and commitment to delivering shareholder value. The ex-dividend date is set for October 3, 2025, with the payment date scheduled for October 24, 2025, indicating a stable financial position and potential positive implications for investors.

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 Strong Revenue and Profit Growth in H1 2025
Aug 11, 2025

Q Technology (Group) Company Limited reported a 15.1% increase in revenue for the first half of 2025, driven by a significant rise in sales volume of camera modules for automotive and IoT applications, as well as fingerprint recognition modules. The company’s gross profit margin improved to 7.4%, supported by a focus on high-end products and increased capacity utilization. Profit surged by 167.6% compared to the previous year, aided by a turnaround in the performance of an associate company. An interim dividend was declared, reflecting the company’s strong financial performance.

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 Enhances Industry Position with Strategic Valuation Insights
Aug 7, 2025

Q Technology (Group) Co has provided additional information regarding its proposed transaction, emphasizing the selection of comparable companies for valuation purposes. The selected companies, chosen by Pensar Advisors Private Limited, align closely with Q Tech India’s business model and market focus, ensuring accurate comparability in terms of financial and operational risks. This strategic move is expected to enhance Q Technology’s industry positioning by aligning with peers that reflect integrated operations and cater to similar end-use categories.

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 Strong Sales Growth in July 2025
Aug 7, 2025

Q Technology (Group) Co. reported a significant increase in the sales volume of its major products for July 2025. The company saw a 15.7% month-on-month and 18.9% year-on-year increase in camera module sales, driven by higher demand for mobile phone camera modules with resolutions of 32 megapixels and above, as well as camera modules used in IoT and smart vehicles. Fingerprint recognition modules also experienced a 3.6% month-on-month increase, attributed to the impact of customers’ project cycles and market share gains. These figures, however, do not represent the company’s actual revenue or profit and are subject to adjustments.

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 Schedules Board Meeting to Review Financial Results and Dividend
Jul 24, 2025

Q Technology (Group) Company Limited has announced a board meeting scheduled for August 11, 2025, to discuss and approve the unaudited consolidated financial results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend and address any other business matters, reflecting the company’s ongoing financial management and potential shareholder returns.

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 Potential Sale of Majority Stake in Q Tech India
Jul 15, 2025

Q Technology (Group) Co., a company incorporated in the Cayman Islands, has announced a potential disposal of a 51% equity interest in its subsidiary, Q Tech India, to Dixon. The transaction is valued at approximately INR5,530,000,000, and upon completion, Q Technology will retain a 49% stake in Q Tech India, which will no longer be consolidated as a subsidiary. This move is part of a strategic realignment and is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring specific reporting and announcement protocols.

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 Projects Significant Profit Surge in H1 2025
Jul 10, 2025

Q Technology (Group) Company Limited has announced a significant expected increase in its consolidated profit for the first half of 2025, projecting a rise of approximately 150% to 180% compared to the same period in 2024. This growth is attributed to stable global smartphone sales with improved camera module specifications, increased sales of mid-to-high-end camera modules, and a notable rise in sales of fingerprint recognition modules. The company’s strategic focus on high-end products and the improved performance of its associate, Newmax Technology Co., Ltd., have also contributed to enhanced revenue and gross margins.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$6.43 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 June 2025
Jul 8, 2025

Q Technology (Group) Co., Ltd reported a slight year-on-year increase in the total sales volume of camera modules in June 2025, driven by its strategic focus on mid-to-high-end products and significant market share gains in IoT and smart vehicle sectors. However, the company experienced a month-on-month decrease in the sales volume of fingerprint recognition modules due to customer project cycles, although there was a year-on-year increase attributed to market share gains in this segment.

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 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.

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: Jul 26, 2025