Q TECH (01478) saw its shares decline by more than 7%. At the time of writing, the stock was down 7.33%, trading at HK$8.47, with a turnover of HK$123 million. The drop follows the company's release of its 2025 annual results yesterday, which showed revenue of RMB 20.877 billion, an increase of 29.26% year-on-year. Profit attributable to equity holders was RMB 1.494 billion, surging 435.22% compared to the previous year. Additionally, net profit excluding gains from the equity arrangement of its Indian subsidiary was RMB 680 million, up 144.4% year-on-year. The company proposed a final dividend of 40 HK cents per share. Citigroup issued a research report stating that Q TECH's annual performance was in line with previously announced forecasts. The bank lowered its earnings per share estimates for 2026 and 2027 by 39% and 33%, respectively, citing headwinds in the smartphone business, partially offset by growth in non-handset segments. Citigroup also reduced its target price from HK$12 to HK$9 and downgraded its rating from "Buy" to "Neutral".
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