Q TECH Shares Drop Over 5% as Memory Price Hampers Smartphone Shipments, Multiple Products See Monthly Decline

Stock News07-13

Q TECH (SEHK: 01478) shares are currently down more than 5%. At the time of writing, the stock has fallen 5.65% to HK$6.68, with a turnover of HK$22.3758 million.

The company has released an operational update. In June, the combined sales volume of its camera modules and lidar products was 41.5 million units, representing a month-on-month decrease of 12.6% but a year-on-year increase of 20.8%. The sales volume of biometric modules totaled 11.96 million units, down 13.4% month-on-month and 13.9% year-on-year.

During the period, the company's joint venture in India, Q TECH India, reported a combined camera module sales volume of 10.08 million units, up 6.3% month-on-month and a significant 261% year-on-year. Its biometric module sales volume was 1.28 million units, declining 25.3% from the previous month and 36.6% from the same period last year.

According to the announcement, the year-on-year growth in camera module and lidar product sales was primarily due to the company securing a larger share of business with several domestic and international smartphone brand clients, alongside a notable increase in camera modules and lidar products designed for automotive applications. The month-on-month decrease was mainly attributed to the impact of customer project cycles.

The decline in biometric module sales, both month-on-month and year-on-year, was primarily caused by customer project cycles and weak demand in the smartphone market, which has been adversely affected by rising memory prices.

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