Quectel(SH:603236) EBSCN·2025-03-12 07:52Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to achieve rapid growth in 2024, with projected revenue of 18.56 billion yuan, a year-on-year increase of approximately 33.90%, and a net profit of 540 million yuan, reflecting a staggering growth of 495.33% [1][3] - The overall demand in the IoT market is recovering, driven by advancements in edge computing, mixed reality, and large models, which are increasingly integrating with IoT technologies [1] - The global IoT connections are estimated to grow from 15.7 billion in 2023 to 38.8 billion by 2029, with cellular IoT connections expected to rise from 3.4 billion to 6.7 billion in the same period [1] Summary by Sections Performance Forecast - The company forecasts a significant recovery in the IoT market in 2024, leading to an upward revision of the net profit forecast to 540 million yuan, an increase of 7% from previous estimates [3] - The projected net profit for 2025 is 701 million yuan, and for 2026, it is 888 million yuan, corresponding to P/E ratios of 40, 31, and 25 respectively [3] Product Development - The company has developed over 50 models of 5G modules, covering various applications including industrial, automotive, and smart devices [3] - The introduction of new smart modules and solutions aims to enhance capabilities in sectors such as smart payment and robotics [3] Industry Trends - The integration of 5G and high computing power is becoming a crucial development direction in emerging industries, with the company actively exploring edge computing and XR solutions [2] - The company has established a comprehensive 5G+XR ecosystem since 2022, showcasing its advanced algorithm capabilities in various industrial applications [2]