Q TECH (01478) surged over 4% in afternoon trading. As of press time, the stock was up 2.93% to HKD 15.44, with turnover reaching HKD 62.069 million.

On the news front, Q TECH recently announced its results. For the first half of the year, revenue reached HKD 8.832 billion, up 15.1% year-over-year; net profit was HKD 308 million, surging 167.6% year-over-year; earnings per share stood at 26 cents. The company declared an interim dividend of 15 HK cents, marking the first interim dividend distribution since its listing.

The company attributed the profit increase mainly to steady revenue growth compared to the same period last year, improved gross margin year-over-year, and the turnaround of associate company New Jushi Technology from losses to profitability.

DBS issued a research report stating that Q TECH's interim results strengthened the bank's confidence in the company's product portfolio upgrade and strategy of focusing on developing non-smartphone lens modules. The bank expects the company's second-half results to improve compared to the first half, benefiting from a richer smartphone portfolio, continued recovery in fingerprint recognition module capacity utilization, and ongoing expansion of non-smartphone lens modules as more automotive and IoT projects enter production phase.

CICC indicated that due to better-than-expected growth in non-smartphone revenue and comprehensive layout of medium to long-term growth businesses, it raised the target price by 67% to HKD 14.97. Bank of China International raised Q TECH's target price from HKD 11.6 to HKD 16.4.