SEHK:1478

Stock Analysis Report

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Executive Summary

Q Technology (Group) Company Limited engages in the research and development, design, manufacture, and sale of camera and fingerprint recognition modules in the People’s Republic of China and internationally. More Details


Snowflake Analysis

Outstanding track record with high growth potential.

Share Price & News

How has Q Technology (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1478 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 1478's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-15.2%

1478

-15.7%

HK Consumer Durables

-5.9%

HK Market


1 Year Return

34.5%

1478

87.2%

HK Consumer Durables

21.6%

HK Market

Return vs Industry: 1478 underperformed the Hong Kong Consumer Durables industry which returned 87% over the past year.

Return vs Market: 1478 exceeded the Hong Kong Market which returned 21.6% over the past year.


Shareholder returns

1478IndustryMarket
7 Day-15.2%-15.7%-5.9%
30 Day-6.7%5.6%2.7%
90 Day47.4%19.1%10.9%
1 Year35.8%34.5%93.6%87.2%26.3%21.6%
3 Year34.7%31.6%22.3%15.1%4.2%-6.7%
5 Year1,209.5%1,170.7%76.8%53.8%58.3%31.3%

Long-Term Price Volatility Vs. Market

How volatile is Q Technology (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Q Technology (Group) undervalued compared to its fair value and its price relative to the market?

20.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1478 (HK$14.74) is trading above our estimate of fair value (HK$5.4)

Significantly Below Fair Value: 1478 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1478 is poor value based on its PE Ratio (20.4x) compared to the HK Consumer Durables industry average (9.8x).

PE vs Market: 1478 is poor value based on its PE Ratio (20.4x) compared to the Hong Kong market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1478 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 1478 is overvalued based on its PB Ratio (4.6x) compared to the HK Consumer Durables industry average (0.9x).


Next Steps

Future Growth

How is Q Technology (Group) forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1478's forecast earnings growth (23.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 1478's earnings (23.1% per year) are forecast to grow faster than the Hong Kong market (21.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1478's revenue (17.6% per year) is forecast to grow faster than the Hong Kong market (13.6% per year).

High Growth Revenue: 1478's revenue (17.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1478's Return on Equity is forecast to be high in 3 years time (22.7%)


Next Steps

Past Performance

How has Q Technology (Group) performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1478 has high quality earnings.

Growing Profit Margin: 1478's current net profit margins (4.1%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: 1478's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: 1478's earnings growth over the past year (180.9%) exceeds its 5-year average (27.9% per year).

Earnings vs Industry: 1478 earnings growth over the past year (180.9%) exceeded the Consumer Durables industry 16.2%.


Return on Equity

High ROE: 1478's Return on Equity (22%) is considered high.


Next Steps

Financial Health

How is Q Technology (Group)'s financial position?


Financial Position Analysis

Short Term Liabilities: 1478's short term assets (CN¥8.0B) exceed its short term liabilities (CN¥7.9B).

Long Term Liabilities: 1478's short term assets (CN¥8.0B) exceed its long term liabilities (CN¥342.0M).


Debt to Equity History and Analysis

Debt Level: 1478's debt to equity ratio (67.3%) is considered high.

Reducing Debt: 1478's debt to equity ratio has increased from 31.4% to 67.3% over the past 5 years.

Debt Coverage: 1478's debt is well covered by operating cash flow (98.6%).

Interest Coverage: 1478's interest payments on its debt are well covered by EBIT (19.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Q Technology (Group) current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1478's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.03%).

High Dividend: 1478's dividend (0.73%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.3%).


Stability and Growth of Payments

Stable Dividend: 1478 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1478 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1478 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1478's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Sanmu Hu (44 yo)

0.17

Tenure

CN¥982,000

Compensation

Mr. Sanmu Hu serves as the Chief Executive Officer at Q Technology (Group) Company Limited since December 15, 2020. He serves as a Vice President of Sales at Q Technology (Group) Company Limited and has be...


CEO Compensation Analysis

Compensation vs Market: Sanmu's total compensation ($USD151.70K) is below average for companies of similar size in the Hong Kong market ($USD580.71K).

Compensation vs Earnings: Sanmu's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ningning He
Executive Chairman of the Board6.25yrsCN¥317.00k64.28%
CN¥ 11.1b
Sanmu Hu
CEO, VP of Sales & Executive Director0.17yrCN¥982.00k0.20%
CN¥ 35.1m
Yun Cai
Chief Financial Officer0.17yrno datano data
Tilun Liu
Vice President of Technology Centerno datano datano data
Fuqiang Fan
Executive Director0.17yrno data0.25%
CN¥ 43.7m
Yanfang Le
Senior Human Resources Managerno datano datano data
Zhihua Cheng
Company Secretary3.25yrsno datano data

1.7yrs

Average Tenure

44yo

Average Age

Experienced Management: 1478's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ningning He
Executive Chairman of the Board6.25yrsCN¥317.00k64.28%
CN¥ 11.1b
Sanmu Hu
CEO, VP of Sales & Executive Director0.17yrCN¥982.00k0.20%
CN¥ 35.1m
Fuqiang Fan
Executive Director0.17yrno data0.25%
CN¥ 43.7m
Ping Keung Ko
Independent Non-Executive Director3.75yrsCN¥88.00k0.017%
CN¥ 2.9m
Sui Yin Ng
Independent Non-Executive Director6.25yrsCN¥88.00kno data
Chia-Hsiang Chu
Independent Non-Executive Director6.25yrsCN¥88.00kno data

5.4yrs

Average Tenure

49.5yo

Average Age

Experienced Board: 1478's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Q Technology (Group) Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Q Technology (Group) Company Limited
  • Ticker: 1478
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: HK$17.279b
  • Shares outstanding: 1.17b
  • Website: https://www.qtechglobal.com

Number of Employees


Location

  • Q Technology (Group) Company Limited
  • No. 3 Taihong Road
  • Hi-tech Industry Park
  • Kunshan
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1478SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2014
1478SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2014
1478SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2014

Biography

Q Technology (Group) Company Limited engages in the research and development, design, manufacture, and sale of camera and fingerprint recognition modules in the People’s Republic of China and international...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 10:18
End of Day Share Price2021/02/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.