HONG KONG -- Chinese smartphone camera module and fingerprint sensor maker Q Technology on Wednesday struck an upbeat note about its sales in the second half of this year, partly thanks to its expanding reach in the domestic market.
Q Technology supplies fingerprint sensors to top-tier Chinese smartphone brands including Huawei Technologies, Oppo and Vivo. It provides camera modules for Oppo, Vivo and ZTE.
"We continue to be optimistic about market demand," said Q Technology Chairman He Ningning at an earnings press conference in Hong Kong on Wednesday.
The company maintained its guidance at the beginning of the year that overall camera module shipments this year will grow no less than 25% from 177 million units in 2016, according to Chief Financial Officer Richard Fan.
Q Technology meanwhile raised the forecast for shipments of fingerprint sensors from no less than 60 million units to more than 60 million units this year. Last year, it only shipped some 21 million units.
He said the company is making market share gains in camera modules due to its improving technologies.
Jeff Pu, an analyst at Taipei-based Yuanta Investment Consulting, said that Q Technology's market share gain in the smartphone camera module sector possibly came from snatching Huawei orders from Taiwanese rival Lite-On Technology.
Revenue and profit surged in the first half of 2017 thanks to growing demand for the company's fingerprint sensors and improving average sales price of its camera modules as Q Technology finetuned its camera specifications.
Net income rose 145.5% year-on-year to 201.78 million yuan ($31.21 million) on revenue of 3.6 billion yuan, also up 108.7% from the year-ago period.
Camera modules that offer 13 million pixels or higher contribute to 48.4% of total sales in the January-June period, up from 24.9% during the first six months of 2016.
Fingerprint sensors accounted for 28.6% of the total revenue in the first half, up from 2.4% in the year-ago period.
Q Technology shares closed up 4.49% at HK$10.24 after the company released its results during the trading day. The stock has more than quadrupled in value over the past year.