FIBOCOM(SZ:300638) CSC SECURITIES (HK) LTD·2025-06-12 07:34Investment Rating - The report assigns a "Buy" rating to the company with a target price of 30.00 CNY, indicating a potential upside from the current price of 26.25 CNY [1][7]. Core Insights - The company is positioned in the communication industry and has recently launched an AI-powered toy that leverages its MagiCore module, which is expected to drive growth in the emerging AI consumer market [8][9]. - The company has submitted an application for a Hong Kong stock listing, with funds raised intended for R&D, manufacturing facilities, strategic investments, and working capital [9]. - Despite a decline in revenue in Q1 2023, the company is expected to stabilize its gross margin and improve profitability through cost reduction and efficiency measures [9][14]. Company Overview - The company operates primarily in the wireless communication module sector, accounting for 97.35% of its product mix, with the remaining 2.65% from other products [3]. - As of June 11, 2025, the company's A-share market capitalization is approximately 139.89 billion CNY, with a total of 765.45 million shares issued [2]. Financial Performance - In Q1 2023, the company reported revenue of 1.856 billion CNY, a year-on-year decrease of 12.59%, and a net profit of 118 million CNY, down 37.30% [9]. - The projected net profit for 2025 is estimated at 617.32 million CNY, reflecting a year-on-year decrease of 7.58% [12][14]. - The company anticipates a recovery in profitability driven by growth in the AI and robotics sectors, with EPS expected to be 0.81 CNY in 2025 [12][14]. Market Position and Strategy - The company is actively investing in 5G RedCap products and exploring applications in various sectors, including power, video surveillance, and wearable devices [9]. - The establishment of a smart computing product line in 2023 indicates the company's commitment to advancing its capabilities in robotics and AI [9].