Quectel(SH:603236) ZHESHANG SECURITIES·2024-09-01 05:23Investment Rating - The investment rating for the company is "Accumulate" (maintained) [6] Core Views - The company's performance slightly exceeded the forecast, with market demand gradually recovering [2] - In the first half of 2024, the company achieved operating revenue of 8.25 billion yuan, a year-on-year increase of 26.7%, and a net profit attributable to shareholders of 210 million yuan, marking a return to profitability [3] - The recovery in performance is attributed to the gradual restoration of market demand and the expansion of derivative businesses based on module operations [3] - The company has significantly improved its profitability, with a gross margin of 18.14% and a net profit margin of 2.47% in the first half of 2024 [3] Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 4.29 billion yuan, a year-on-year increase of 27.3% and a quarter-on-quarter increase of 8.6% [3] - The net profit for Q2 2024 was 150 million yuan, a year-on-year increase of 691.5% and a quarter-on-quarter increase of 182.3% [3] - The company’s gross margin for Q2 2024 was 19.26%, up 1.72 percentage points year-on-year, and the net profit margin was 3.53%, up 2.98 percentage points year-on-year [3] Market Position - The global market share of the company reached 37.1% in Q1 2024, an increase of 3.1 percentage points compared to the entire year of 2023 [4] - The demand for cellular IoT modules is expected to grow, with global shipments projected to reach 790 million units by 2029, generating revenue of approximately 9.495 billion USD [4] Product Development - The company has successfully launched several smart module products for various applications, including smart payments and industrial inspection [5] - The satellite communication modules have been widely adopted in logistics monitoring and emergency communication [5] - The automotive module technology ecosystem includes seven major products, with significant adoption by leading automotive manufacturers [5] Operational Efficiency - The company invested 796 million yuan in R&D in the first half of 2024, accounting for 9.65% of operating revenue [7] - The company has improved operational efficiency, with a reduction in sales, management, and R&D expense ratios compared to the previous year [7] Profit Forecast and Valuation - The forecasted net profits for 2024, 2025, and 2026 are 500 million yuan, 700 million yuan, and 862 million yuan, respectively [8] - The corresponding PE ratios for these years are projected to be 23, 17, and 13 [8]