News Alert : Camera module shipment dropped 17% y-o-y in Sep 22, missing management guidance
- CCM volume decreased 17.4% y-o-y, missing the management guidance
- 32M and above CCM volume y-o-y decline narrowed to 20.5%
- We expect negatives have been priced in
What’s New
– Q Tech (1478 HK) announced its Sep 22 shipment volume today after market close.
– CCM shipment volume declined 17.4% y-o-y (vs 13.6% decline in Aug), behind management guidance on Sep shipment, suffering from the prolonged weak consumer sentiment for smartphones. The listing document of its subsidiary Kunshan QT discloses a Sep CCM shipment forecast of 9.6% y-o-y decline last month
– 32 Megapixels and above CCM shipment y-o-y decline slightly narrowed to 20.5% from 22.0% decline in Aug.
– CCM for Other Fields including vehicle CCM surged 241.1% y-o-y but still remained in a very limited scale.
– Fingerprint recognition modules increased 25.4% y-o-y
Our View:
– We expect negatives have been priced in as the share price already has a 37% correction since the last shipment announcement.
– We expect the CCM shipment decline to last in the 2H22, but revenue growth to resume in 2023 on the back of its premiumisation strategy to alleviate the negative impact of sluggish shipment growth.
– We maintain BUY rating with TP at HK$5.2 on an undemanding valuation of 7x FY22 PE.
