CMB International increased the earnings per share of Qiutai Technology (01478) by 2%-5% from 2024-2025.
The Zhitong Finance App learned that CMB International released a research report saying that maintaining the “buy” rating of Qiutai Technology (01478), the target price is HK$3.93, mainly due to high profit visibility. Future stock price catalysts include new product launches and better monthly shipments. The bank recently communicated with the company's management and remains optimistic that the recovery of high-end Android phones will drive ASP/shipment growth in 2024.
According to the report, the company also expects GPM to improve in 1H24E, benefiting from a better product portfolio and easing of competition in the industry. In the first quarter of 2024, the company's mobile/non-mobile camera module shipments increased 23%/179% year-on-year respectively, mainly benefiting from industry inventory replenishment, customer project cycle, and automotive/IoT order acquisition. The bank will increase earnings per share by 2%-5% in 2024-2025 to consider better ASP/shipments. The stock is currently valued at a price-earnings ratio of 9.7x/7.1x 2024/2025 (compared to the 8-year historical average PE of 18x), which the bank considers very attractive.