Changes in Hong Kong stocks | Qiu Tai Technology (01478)'s stock price fell by more than 5%, and the cumulative stock price fell by more than 15% after the performance, and the product structure dragged down profitability

The Zhitong Finance App learned that Qiu Tai Technology (01478) fell by more than 5%, and the cumulative stock price dropped by more than 15% after the results. As of press release, it decreased by 5.1% to HK$5.68, with a turnover of HK$88,069 million.

According to the news, Qiutai Technology achieved revenue of 9,923 billion yuan in the first half of this year, an increase of 12.36% over the previous year; net profit to mother was 276 million yuan, a decrease of 10.49% over the previous year. According to CICC, the decline in profit was mainly due to the stagnation of mid-range and low-end camera module specifications and increased market competition. At the same time, the share of high-end camera modules above 32MP fell by about 7% year on year, resulting in a 14% year-on-year decline in mobile phone camera module ASP; a decline in capacity utilization of biometric modules; a 24% year-on-year increase in R&D expenses; and an 80% year-on-year decrease in joint venture revenue.

Citigroup's recent research report indicates that Qiutai Technology's mobile phone business is under pressure due to rising memory prices, but the customer structure has improved, and the overall business should benefit from the victory of the flagship project and outperform the industry. Based on the company's performance and outlook for the first half of the year, the company's 2026-28 earnings estimate was lowered by 13 to 16%, and the target price was lowered from HK$9 to HK$6.9, maintaining a “neutral” rating.