Skip to content
Alpha Edge Investing

Alpha Edge Investing

"Investors operate with limited funds and limited intelligence, they don’t need to know everything. As long as they understand better than others, they have an edge.” – George Soros

  • Home
  • Earnings Updates/ Corporate Actions
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trust/ ETF
  • News
  • My Opinions/ Views
  • Others
  • About Me
  • Contact
  • Disclaimer
  • Community and Support Forums
  • Toggle search form

DBS: Q Technology (Group) Co Ltd – Buy Target Price HK$5.20

Posted on September 15, 2022September 15, 2022 By alanyeo No Comments on DBS: Q Technology (Group) Co Ltd – Buy Target Price HK$5.20
News Alert : Camera module shipment dropped 14% y-o-y in Aug 22, missing the management guidance
  • CCM volume decreased 13.6% y-o-y, missing the management’s guidance
  • 32M and above CCM volume y-o-y decline expanded to 21.1%
  • We expect share price to be under pressure in short term
What’s New

– Q Tech (1478 HK) announced its Aug 22 shipment volume today after market close. 

– CCM shipment volume declined 13.6% y-o-y (vs 3.7% decrease in Jul), behind management’s guidance on Aug shipment (disclosed in the listing document of a key subsidiary Kunshan QT), suffering from the prolonged weak consumer sentiment for smartphones

– 32 Megapixels and above CCM shipment y-o-y decline expanded to 21.1% (vs 11.6% decline in Jul).

– CCM for Other Fields including vehicle CCM surged 287.1% y-o-y but still remained in a very limited scale.

– Fingerprint recognition modules decreased 3.7% y-o-y (increased 32.7% m-o-m).

Our View:

– We expect short-term share price pressure as the Aug CCM shipment misses the management guidance. 

– We expect the CCM shipment decline to narrow and shipment to rebound in 2H22 owing to 1) increased penetration in shipments for high-potential customers and 2) the resolution of the logistics constraints

– We maintain BUY rating with TP at HK$5.2 on its premiumisation strategy to alleviate the negative impact of weak smartphone shipments.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
Research - Equities Tags:Q Technology

Post navigation

Previous Post: DBS: BAIC Motor Corp – Hold Target Price HK$2.20
Next Post: CIMB: Ascendas REIT – Add Target Price $3.21

Related Posts

DBS: Q Technology (Group) Co Ltd – Buy Target Price HK$5.20 Research - Equities
DBS: Q Technology (Group) Co Ltd – Buy Target Price HK$5.20 Research - Equities
DBS: Q Technology (Group) Co Ltd – Buy Target Price HK$5.20 Research - Equities
DBS: Q Technology (Group) Co Ltd – Buy HK$8.90 Research - Equities
UOBKH: IT Hardware China (Underweight) – AAC, Q Tech, Sunny Optical Research - Equities
DBS: Q Technology (Group) Co Ltd – Buy TP HK$8.90 Research - Equities
CIMB: Q Technology – ADD TP HK$8.47 Research - Equities
DBS: Q Technology (Group) Co Ltd – BUY TP $8.90 Research - Equities
UOBKH: China IT Hardware (Market Weight) Research - Equities
CIMB: Q Technology – ADD TP HK$10.56 (Previous HK$14.25) Research - Equities
CIMB: Q Technology – ADD TP HK$14.25 (Previous HK$20.61) Research - Equities
DBS: Q Technology – BUY TP HK$16.60 (Previous $16.80) Research - Equities

Leave a Reply

You must be logged in to post a comment.

Login

Log In
Register Lost Password
Get new posts by email
Chat on WhatsApp
  • Earnings Updates/ Corporate Actions
  • My Opinions/ Views
  • News
  • Others
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trusts/ ETF

Copyright © 2023 Alpha Edge Investing.

Powered by PressBook Grid Blogs theme