Quectel(SH:603236) Shanxi Securities·2024-09-06 09:01Investment Rating - The report maintains an "Add-B" rating for the company, indicating a positive outlook with expected growth above the benchmark index [4]. Core Insights - The company achieved significant revenue growth in the first half of 2024, with a total revenue of 8.25 billion yuan, representing a year-on-year increase of 26.7%. The net profit attributable to shareholders reached 210 million yuan, up 281.5% year-on-year [1][4]. - The domestic and overseas revenue for the company in the first half of the year was 4.03 billion yuan and 4.22 billion yuan, respectively, showing increases of 41.2% and 15.3% year-on-year [2]. - The company is focusing on expanding its product line, particularly in 5G Redcap, smart modules, and satellite modules, which are expected to contribute to higher growth rates [3][4]. Financial Performance - The company reported a net profit of 210 million yuan in the first half of 2024, with a significant increase in the second quarter, where the net profit reached 160 million yuan, up 691.5% year-on-year [1]. - The financial forecast for 2024-2026 indicates a net profit of 530 million yuan, 690 million yuan, and 890 million yuan, with year-on-year growth rates of 479.5%, 31.5%, and 29.1%, respectively [4][6]. - The company's revenue for 2024 is projected to be 17.67 billion yuan, with a year-on-year growth of 27.5% [6]. Market Position - The company maintains a leading position in global shipments, with a market share of 37.1% in the first quarter of 2024 [2]. - The domestic IoT market is showing signs of recovery, driven by demand for LTE cat1 bis and smart connected vehicles, contributing to the company's strong performance [2][3]. Product Development - The company has increased its R&D investment, with R&D expenses amounting to 796 million yuan in the first half of 2024, accounting for 9.6% of revenue [1]. - The introduction of various products, including the RG650x 5G-A baseband and RF standard module, as well as multiple satellite communication modules, showcases the company's commitment to innovation [1][3].