Queclink(SZ:300590) SINOLINK SECURITIES·2024-07-19 00:00Investment Rating - The report maintains a "Buy" rating for the company [12][14]. Core Insights - The company has successfully passed certification for its CV200XNA 4G high-performance driving recorder with T-Mobile, indicating enhanced reliability and compatibility in smart driving technology [1]. - The company has experienced significant growth in the first half of 2024, with expected net profit ranging from 97.93 million to 104.13 million RMB, representing a year-on-year increase of 58% to 68% [12]. - The gross margin has improved significantly, with the second quarter of 2024 projected to achieve a gross margin of approximately 44% [12]. - The company is expanding its overseas market presence, with 89% of its revenue coming from international markets in 2023, and has taken measures to mitigate risks associated with rising tariffs by establishing processing plants in Vietnam and a subsidiary in Singapore [12]. - Future revenue projections for 2024-2026 are estimated at 1.366 billion, 1.726 billion, and 2.063 billion RMB, with corresponding net profits of 227 million, 301 million, and 370 million RMB [12]. Summary by Sections Financial Performance - The company expects to achieve a net profit of 624.99 million to 686.97 million RMB in Q2 2024, reflecting a year-on-year growth of 46.6% to 61.2% and a quarter-on-quarter growth of 76.4% to 93.9% [12]. - The comprehensive gross margin for 2023 was reported at 40.40%, with the first quarter of 2024 at 40.87% [12]. - The company’s revenue for 2024 is projected to grow by 34.45%, followed by 26.38% in 2025 and 19.51% in 2026 [14]. Market Strategy - The company is focusing on expanding its overseas market share and has implemented strategies to counteract potential tariff increases, ensuring continued reliance from overseas clients [12]. - The establishment of a processing plant in Vietnam and a subsidiary in Singapore is part of the company's strategy to enhance its supply chain resilience against geopolitical changes [12]. Valuation Metrics - The projected P/E ratios for 2024, 2025, and 2026 are 24, 18, and 15, respectively, indicating a favorable valuation outlook [12].