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.
