Quectel(SH:603236) CSC SECURITIES (HK) LTD·2025-12-24 07:43Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of 15% to 35% from the current price [7][8]. Core Insights - The company holds a leading position in the global cellular IoT module market, with a market share of 37% as of Q3 2025, and is expected to benefit from increased demand driven by edge AI modules in the coming years [8][10]. - The company's net profit for the first three quarters of 2025 increased by 105.65% year-on-year, reaching RMB 733 million, which exceeded market expectations [10]. - The company is well-positioned to capitalize on the recovery of the IoT industry, with significant growth anticipated in the automotive and smart meter sectors [10]. Company Overview - The company operates in the communication industry, with a current A-share price of RMB 92.64 and a market capitalization of RMB 24.24 billion [2]. - The company has a total of 261.66 million shares outstanding, with major shareholder Qian Penghe holding 17.19% [2]. Financial Performance - For the fiscal year ending December 31, 2025, the company is projected to achieve a net profit of RMB 1.024 billion, representing a year-on-year growth of 75% [9][10]. - The earnings per share (EPS) for 2025 is estimated at RMB 3.91, with a price-to-earnings (P/E) ratio of 24 [9][10]. Market Position - The company has maintained its leading market share in the IoT module sector, with a strong performance in wireless, automotive, and smart modules [10]. - The global IoT module market is expected to recover in 2024, following a decline in 2023, with the company poised to benefit from this recovery [10].