Neoway(SH:688159) GOLDEN SUN SECURITIES·2025-08-29 09:48Investment Rating - The report initiates coverage with a "Buy" rating for the company [4] Core Insights - The company is positioned in the Internet of Things (IoT) sector, focusing on wireless communication modules and cloud products, with significant growth expected in its cloud business [1][3] - The company has a strong management team with an average of over 20 years of experience in the telecommunications industry, enhancing its competitive edge [1][2] - The financial outlook is optimistic, with projected revenue growth of 229.3% year-on-year in 2024, driven by the rapid expansion of cloud products [1][9] Company Overview - The company, established in 2006, focuses on providing IoT communication products and services, including cloud solutions [1][15] - It has recently expanded into cloud products, with plans to enter the computing cloud service market by 2025 [1][3] Financial Performance - The company reported a revenue of 932 million RMB in 2023, with projections of 3,069 million RMB in 2024 and 5,158 million RMB in 2025, indicating substantial growth [9][26] - The net profit is expected to turn positive in 2024, reaching 100 million RMB, and further increasing to 235 million RMB in 2025 [9][26] Industry Outlook - The IoT industry is recognized as a strategic emerging industry in China, with a projected compound annual growth rate of 15% for cellular IoT connections from 2024 to 2030 [2][32] - The wireless communication module market is highly concentrated, with the top five companies holding over 75% of the market share [2][33] Competitive Advantages - The company possesses multiple core competencies in wireless communication technology, including proprietary technologies and patents [2][35] - It has established a leading position in the smart grid sector, with over 50% of the market share in wireless communication modules for the national grid [2][36] Cloud Business Potential - The domestic demand for intelligent computing is strong, and the company's cloud products are expected to experience significant growth due to favorable market conditions [3][28] - The company plans to sign a procurement contract for up to 4 billion RMB for servers to support its computing cloud services, which is anticipated to positively impact future financial performance [3][8]