Q Technology (Group) Company (1478) H2 2024 earnings summary

Executive summary

• Revenue increased 28.9% year-over-year to RMB 16.15 billion, driven by strong demand and increased market share in smartphone, automotive, IoT, and high-spec camera modules.

• Net profit surged 234.1% year-over-year to RMB 279.1 million, supported by revenue growth, margin expansion, and reduced associate losses.

• Gross profit margin improved by 2.0pts to 6.1%, with gross profit up 93.6% to RMB 984.9 million due to product mix upgrades and higher capacity utilization.

• Significant expansion in non-handset CCM, FPM, and smart equipment businesses, with improved product mix and customer diversification.

• Final dividend of HK$0.10 per share (RMB 0.093) proposed for 2024.

Financial highlights

• Camera module sales volume grew 16.2% YoY; fingerprint recognition modules up 46.0% YoY.

• Combined high-end camera modules (32MP+) and non-handset modules accounted for 51.5% of total camera module sales, up from 41.6%.

• Basic EPS increased 241.3% YoY to RMB 0.236; diluted EPS RMB 0.235.

• Operating cash flow turned positive at RMB 965.4 million, compared to negative in the prior year.

• Gross profit margin improved by 2.0 percentage points year-over-year.

Outlook and guidance

• 2025 goals: ≥55% of mobile phone CCM sales from 32MP+ modules, >100% YoY growth in periscope CCM, ≥40% YoY growth in non-handset CCM, and ≥20% YoY growth in FPM sales.

• Global smartphone shipments expected to grow 3% in 2025; high-end and AI-enabled devices to drive demand.

• IoT and automotive camera module markets forecasted to expand, with new energy vehicles and autonomous driving penetration rising.