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

• Market Cap: HK$10.99B
• Dividend Yield: 3%
• Average Volume (3M): 4.96M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.32
• Revenue Growth: 17.21%
• EPS Growth: 166.36%
• Country: HK
• Employees: 10,609
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.29
• Shares Outstanding: 1,189,531,500
• 10 Day Avg. Volume: 5,099,578
• 30 Day Avg. Volume: 4,963,937
• PEG Ratio: 0.10
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 7.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$10.50
• Price Target Upside: 21.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: HK$9.50 ▲(9.83% Upside)

The score is primarily driven by solid revenue growth and a stabilizing balance sheet, offset by weak cash flow signals and thin profitability margins. Technicals add pressure due to a downtrend versus key moving averages and a negative MACD, while valuation is moderate with some support from the dividend yield.

Positive Factors

Revenue Growth Trend

Sustained revenue growth of ~29% indicates expanding product adoption and improved order flow from device customers. Over 2–6 months this supports scale advantages, better bargaining with suppliers, and the ability to fund incremental capacity or R&D to capture higher-spec camera module demand.

Improving Balance Sheet

Lower leverage and rising ROE signal a more conservative capital structure and improving returns on equity. This durable improvement enhances financial flexibility to weather smartphone cycles, pursue capex or product upgrades, and reduces refinancing risk over the medium term.

Strategic OEM Supplier Position

Being a focused supplier of camera modules and precision optics gives structural advantages: long-term customer relationships, technical know-how, and integration into OEM supply chains. These create barriers to entry and recurring revenue tied to device build cycles.

Negative Factors

Very Low Gross Margin

A 6.1% gross margin points to persistent cost or pricing pressure in core hardware products. Structurally low gross margins limit the ability to absorb input cost inflation, invest in higher-margin R&D, or improve operating profitability without meaningful product mix upgrades.

Weak Cash Conversion

Reported zero operating and free cash flow indicates difficulty turning earnings into cash. Over months this constrains reinvestment, dividend sustainability, and increases reliance on external funding for capex or working capital, raising medium-term execution risk.

Thin Overall Profitability

Very thin net and operating margins mean small revenue or cost swings can erase profits. This reduces resilience to cyclical smartphone demand, limits internal funding for product upgrades, and pressures the company to achieve sustained mix or efficiency gains to materially improve returns.

Q Technology (Group) Co Business Overview & Revenue Model

Company Description

Q 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 Money

Q Technology generates revenue primarily through the sale of its semiconductor products and components to major smartphone manufacturers and electronics companies. The company operates on a business-to-business (B2B) model, where it supplies high-volume orders of integrated circuits and modules. Key revenue streams include direct sales of camera modules, fingerprint sensors, and related technology solutions, as well as long-term contracts with prominent clients in the consumer electronics market. Additionally, Q Technology may benefit from partnerships with technology firms and participation in industry collaborations, which can enhance its market position and drive sales growth. Factors contributing to its earnings include the increasing demand for advanced technology in mobile devices, strategic pricing of its products, and the ability to adapt to market trends and customer needs.

Q Technology (Group) Co Financial Statement Overview

Summary

Q Technology shows promising revenue growth and improved net income. However, low profitability margins and liquidity concerns from the cash flow statement indicate the need for operational efficiency improvements and better cash management.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.31B	16.15B	12.53B	13.76B	18.66B	17.40B
Gross Profit	1.24B	984.90M	508.86M	541.34M	1.76B	1.77B
EBITDA	956.20M	756.48M	683.10M	633.86M	1.54B	1.47B
Net Income	472.19M	279.07M	81.92M	171.15M	862.98M	840.11M
Balance Sheet
Total Assets	15.26B	14.45B	14.94B	12.29B	13.05B	11.40B
Cash, Cash Equivalents and Short-Term Investments	3.78B	2.92B	3.82B	3.04B	1.79B	2.08B
Total Debt	2.92B	2.45B	4.39B	2.64B	1.79B	1.31B
Total Liabilities	9.93B	9.36B	10.11B	7.52B	8.34B	7.62B
Stockholders Equity	5.33B	5.09B	4.83B	4.76B	4.70B	3.79B
Cash Flow
Free Cash Flow	1.42B	965.44M	-378.78M	1.05B	1.60B	3.60B
Operating Cash Flow	1.42B	965.44M	-378.78M	1.05B	1.60B	3.60B
Investing Cash Flow	-911.23M	-1.04B	366.72M	-1.94B	-880.47M	-695.87M
Financing Cash Flow	-509.26M	-1.37B	1.55B	468.48M	-942.20M	-1.31B

Q Technology (Group) Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1478, the sentiment is Neutral. The current price of 8.65 is below the 20-day moving average (MA) of 8.74, below the 50-day MA of 10.10, and below the 200-day MA of 10.41, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 47.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1478.

Q Technology (Group) Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0710	70 Outperform	HK$4.34B	10.65	8.91%	3.25%	19.25%	-10.14%
0732	64 Neutral	HK$3.34B	12.88	2.87%	9.26%	2.59%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2382	61 Neutral	HK$72.75B	19.66	13.28%	0.82%	7.53%	87.77%
0285	60 Neutral	$81.12B	16.39	14.34%	1.84%	17.48%	10.65%
1478	57 Neutral	HK$10.99B	21.04	9.13%	3.00%	17.21%	166.36%
6088	56 Neutral	HK$33.64B	26.76	6.17%	―	4.33%	-10.79%

Q Technology (Group) Co Corporate Events

Q Technology Reports Mixed November Sales Performance

Q Technology announced a mixed performance in its November 2025 sales volume. The company experienced a month-on-month decrease in the total sales volume of camera modules, attributed to customer project cycles and seasonal factors. However, there was a significant year-on-year increase in camera modules for other fields, driven by the rising popularity of handheld imaging devices and smart vehicle solutions. Additionally, the sales volume of ultrasonic fingerprint recognition modules saw a substantial year-on-year increase due to improved market penetration. Meanwhile, Q Tech India’s camera module sales showed a strong year-on-year growth, while fingerprint recognition modules saw a slight decline.

The most recent analyst rating on (HK:1478) stock is a Hold with a HK$10.00 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 Strong Sales Growth in October 2025

Q Technology announced a significant year-on-year increase in the sales volume of its camera and fingerprint recognition modules for October 2025. This growth is attributed to the company’s increased market share in the mobile phone camera module business and a substantial rise in sales for IoT and smart vehicle applications. The company also completed the disposal of its majority stake in Q Tech India, which will affect how sales volumes are reported moving forward.

The most recent analyst rating on (HK:1478) stock is a Hold with a HK$12.50 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 Renews Key Transaction Agreements to Meet Growing Demand

Q Technology (Group) Co., Ltd. has announced the renewal of its Continuing Connected Transaction Agreements for a three-year term from January 1, 2025, to December 31, 2027. This renewal is in response to projected demands for VCM Components and PCBs from its partners, as well as the demand for automated equipment and software supplied by the Group. The transactions, which involve connected persons of the company, are subject to certain reporting and review requirements under Hong Kong’s Listing Rules but are exempt from independent shareholders’ approval. This strategic move is expected to ensure the company’s continued operations and strengthen its market position.

The most recent analyst rating on (HK:1478) stock is a Hold with a HK$12.50 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 Significant Sales Growth in Camera and Fingerprint Modules

Q Technology announced a notable year-on-year increase in the sales volume of its camera and fingerprint recognition modules for September 2025. The growth in camera modules is attributed to increased market share in the mobile phone sector and higher sales in IoT and smart vehicle applications. Meanwhile, the fingerprint recognition modules saw a significant rise, particularly in ultrasonic modules, reflecting the company’s strengthened market position. Additionally, the company completed the disposal of a majority stake in its Indian associate, Q Tech India, which will no longer be included in consolidated sales figures.

The most recent analyst rating on (HK:1478) stock is a Buy with a HK$17.80 price target. To see the full list of analyst forecasts on Q Technology (Group) Co stock, see the HK:1478 Stock Forecast page.