Quectel(SH:603236) Changjiang Securities·2025-05-07 00:13Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The demand in the IoT market is gradually recovering, and the company is accelerating the promotion of derivative products and solutions based on its module business. The short-term outlook for the IoT industry's downstream is improving, and as the company transitions from product-oriented to solution-oriented, the added value of its products is expected to continue to increase, benefiting in the long term [1][8] Financial Performance - In Q1 2025, the company achieved operating revenue of 5.221 billion yuan, a year-on-year increase of 32.05%, and a net profit attributable to the parent company of 212 million yuan, a year-on-year increase of 286.91% [3][8] - The significant revenue growth is attributed to increased market demand and the expansion of the company's product line. The growth rates of selling expenses, management expenses, and R&D expenses were relatively small at 23.66%, 30.42%, and 12.90%, respectively. Additionally, a reduction in credit impairment losses by 180 million yuan contributed to profit growth [8] Business Growth and Strategy - The 5G module business has seen significant growth, becoming a new growth point for the company. The company has developed over 50 5G module products, with several receiving global certifications. The ODM team's scale and technical capabilities are continuously improving, allowing the company to provide customized solutions to well-known domestic and international clients across various application fields [8] - The company is strategically expanding into new business areas to enhance its comprehensive IoT solution capabilities. It aims to provide comprehensive IoT solutions while consolidating its cellular module business and exploring high-potential fields such as vehicle modules, smart modules, GNSS modules, antennas, and ODM business [8] - Smart modules are emerging as a new growth direction, integrating computing and communication functions, and are expected to drive the demand for edge computing in various fields such as vehicle networking and consumer electronics [8] Profit Forecast - The company is expected to benefit from the recovering demand in the IoT market and the transition towards solution provision. The forecasted net profits attributable to the parent company for 2025-2027 are 715 million yuan, 948 million yuan, and 1.305 billion yuan, representing year-on-year growth rates of 22%, 33%, and 38%, respectively [8]