Quectel(603236) 天风证券·2024-08-27 13:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of 10%-20% over the next six months [6]. Core Insights - The company reported a significant revenue growth of 26.67% year-on-year, achieving a total revenue of 8.249 billion yuan in the first half of 2024 [1]. - The company turned a profit with a net profit of 209 million yuan, compared to a loss in the same period last year, indicating a strong recovery [1][3]. - The gross margin improved to 18.14% for the first half of 2024, with a notable increase in the second quarter to 19.26% [3]. - The company is well-positioned to benefit from the recovery in the IoT market and the growing demand for smart automotive solutions [2][5]. Financial Performance - The company achieved a total revenue of approximately 4.295 billion yuan in Q2 2024, reflecting a year-on-year growth of about 27.25% [2]. - The overseas revenue accounted for 51.17% of total revenue in the first half of 2024, amounting to 4.220 billion yuan [2]. - The projected net profits for 2024-2026 are estimated at 550 million yuan, 730 million yuan, and 940 million yuan respectively, with corresponding P/E ratios of 19.87, 14.99, and 11.62 [5][8]. Business Development - The company is expanding its edge computing capabilities, which are expected to play a crucial role in AI development, particularly in applications like VR/AR and autonomous vehicles [4]. - The introduction of a comprehensive suite of automotive communication modules is aimed at enhancing the smart automotive ecosystem [5]. - The company has successfully integrated its 5G modules with NVIDIA's Jetson AGX Orin, enhancing its AI edge computing capabilities [4].