DBS analyst Jim Hin Kwong Au has maintained their bullish stance on 1478 stock, giving a Buy rating on March 18.
Jim Hin Kwong Au has given his Buy rating due to a combination of factors, including the expected significant earnings growth for Q Technology (Group) Co in FY24, driven by a 200%-280% year-over-year increase. This surge is attributed to the company’s market share gains among Chinese Android brands and a strategic shift towards high-end camera modules, which enhances capacity utilization and boosts gross margins.
Furthermore, Jim anticipates continued market share growth from clients like Vivo and Oppo, as these brands expand in Asia and focus on premium smartphone offerings. The company’s emphasis on advanced compact camera modules (CCMs) and the increasing demand for premium features like AI and foldable phones are expected to drive long-term earnings growth. Additionally, the recovery in smartphone end-market demand and the significant growth in the electric vehicle module segment are seen as key contributors to the company’s overall performance, supporting the Buy recommendation with a target price of HK$ 7.2.
In another report released on March 18, CMB International Securities also reiterated a Buy rating on the stock with a HK$9.25 price target.