External broker reports(aggregated public sources), CMB International

CMB International

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

External broker reports(aggregated public sources)

Equity Bottom-Up

<ul><li>We believe Q-Tech’s FY22 profit warning (70-80% YoY decline) is not surprising given 1) 1H22 earnings decline of 72% YoY, 2) 2H22 CCM shipment weakness (-17% YoY, vs -5% in 1H22) and 3) margin pressure on low utilization and lossmaking IoT/auto CCM biz.</li><li>Looking ahead, while handset CCM/FPM shipment will remain muted in 2023, we believe IoT/auto CCM will become major sales growth drivers with 204%/130% YoY in FY23/24E (vs +1%/4% for mobile CCM), accounting for 10%/19% of sales in FY23/24E (vs 3% in FY22).</li><li>We slightly adjusted FY23/24E EPS for stronger IoT/auto CCM, and reiterate BUY with new TP of HK$5.76, based on same 10x P/E. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We believe Q-Tech’s FY22 profit warning (70-80% YoY decline) is not surprising given 1) 1H22 earnings decline of 72% YoY, 2) 2H22 CCM shipment weakness (-17% YoY, vs -5% in 1H22) and 3) margin pressure on low utilization and lossmaking IoT/auto CCM biz.Looking ahead, while handset CCM/FPM shipment will remain muted in 2023, we believe IoT/auto CCM will become major sales growth drivers with 204%/130% YoY in FY23/24E (vs +1%/4% for mobile CCM), accounting for 10%/19% of sales in FY23/24E (vs 3% in FY22).We slightly adjusted FY23/24E EPS for stronger IoT/auto CCM, and reiterate BUY with new TP of HK$5.76, based on same 10x P/E. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Q-Tech (1478 HK) – Weak 2H22 as Expected

Q Technology Group

Q-Tech (1478 HK) – Weak 2H22 as Expected