【行业研究报告】丘钛科技-Corp Day Takeaways: Expect 4Q22E QoQ improvement; non-handset to accelerate in 2023

29Nov2022
CMBInternationalGlobalMarkets|EquityResearch|CompanyUpdate
Q-Tech(1478HK)
CorpDayTakeaways:Expect4Q22EQoQ
improvement;non-handsettoacceleratein2023
WehostedaninvestorcallwithQ-TechduringourCorporateDayon28Nov.
Despitenoclearsignofsmartphonedemandrecovery,mgmt.expects4QCCM
ASP/shipmenttoimproveQoQduetoseasonality.4QGPMwillremainflatgiven
competitionandslowerspecupgrade.Lookinginto2023,mgmt.remains
positiveon:1)cameraspecupgrade(e.g.OIS,SMAandperiscopelens)todrive
ASP;2)AR/VRsee-throughandpancakelensshipment;and3)newenergy
vehicleproductsin2023.ReiterateBUYwithTPofHK$5.60.
SmartphoneCCM:stableshipmentandGPMin4Q;specupgradeto
driveASPinFY23E.Q-techguided4QCCMshipment/GPMtoimprove
driveASPinFY23E.Q-techguided4QCCMshipment/GPMtoimprove
QoQwithstableinventorylevel.Mgmt.alsoexpectsSamsungCCMto
maintainsteadygrowthdrivenbymaincameraorderwinandspec
improvement.Despiteindustryheadwindsandmacrouncertainties,mgmt.
remainspositiveonsmartphonecameraspecupgradetrendincludingOIS,
SMAandperiscopelenstodriveASPupsidein2023.
AutoCCM:expectdoubledigitsalesmixinFY23E.Q-techwonover20
certifiedOEM/Tier-1autocustomerswithprojectsinoperation.Overall,
mgmt.remainspositiveonautoCCMbusinessprogressandguidedsales
contributiontoincreasefrom4-5%inFY22EtodoubledigitinFY23E.Mgmt.
expectsbusinessinflectionpointinFY23-24Ewhennewenergyvehicle
shipmentvolumeincreasessignificantly.
IoTandAR/VRtoaccelerategrowth.Despiteloss-makingopticallens
business,Newmax,mgmt.believesmoreIoTcameraswillincreasecapacity
utilizationanddrivefurtherintegrationwithparentco.Inaddition,mgmt.
remainspositiveonVRoutlookin2023drivenbyPico4VRproduct,see-
throughandpancakelensramp-up,andorderwinsfromHTCandiQIYI.
Worstislikelyoverin2H;Attractiverisk-rewardattroughvaluation.
Mgmt.expectslimitedimpactfromrecentCOVID-19inChinaonsupplyand
logistics,andthereisnosignofdeterioratingdemandinChinain4Q22E.
Overall,webelievetheworstislikelyoverandremainpositiveonQ-tech’s
non-handsetbusinessexpansionin2023E.Tradingat7.4xFY23EP/E,we
believethestockisextremelyattractive.MaintainBUYwithTPofHK$5.60.
Catalystsinclude4Qshipmentimprovement,autoCCMandA-sharespin-
off.