Queclink(SZ:300590) HTSC·2025-04-25 10:40Investment Rating - The report maintains an "Accumulate" rating for the company [5][8]. Core Views - The company experienced short-term pressure on Q1 performance due to production and supply chain adjustments while expanding overseas capacity, leading to a 26.12% year-on-year revenue decline in Q1 2025. However, the long-term outlook remains positive, particularly in the AI era [1][4]. - The company’s revenue for 2024 was 966.88 million RMB, a decrease of 4.81% year-on-year, while the net profit attributable to the parent company was 158.61 million RMB, an increase of 8.08% year-on-year [1][7]. - The company is focusing on new business areas, such as animal traceability products and video vehicle networking products, which showed strong growth in Q1 2025 [4]. Revenue and Profitability - The company’s comprehensive gross margin for 2024 was 41.95%, an increase of 1.55 percentage points year-on-year, attributed to product structure optimization [3]. - The revenue from the vehicle-mounted information intelligent terminal business in 2024 was 542 million RMB, a year-on-year increase of 12.12% [2]. - The forecast for net profit attributable to the parent company for 2025-2027 is adjusted to 181.49 million RMB, 201.12 million RMB, and 219.45 million RMB, respectively [5][13]. Future Outlook - The company is expected to benefit from the new national standards for two-wheeled vehicles, which will require the installation of positioning and communication modules, potentially driving growth in this segment [2]. - The company has established a dedicated business line for industrial routers, marking it as a strategic focus for future market expansion [4]. - The target price for the company is set at 13.02 RMB, based on a price-to-earnings ratio of 33x for 2025 [5][9].