Q Technology’s (Q Tech) FY21 net profit grew 2.7% yoy and formed only 87% of our forecast due to a sharp drop in 2H21 GPM. FY22F handset camera module (HCM) shipments could grow 13% yoy, but GPM likely to stay low (8.5%) on slow spec-upgrades for Chinese brands. Reiterate Add. TP reduced to HK$10.56 on 24%/26% EPS cuts in FY22F/23F due to GPM pressure in HCM.