Queclink(SZ:300590) Huaxin Securities·2024-04-09 16:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of the stock [1]. Core Insights - The company achieved a total revenue of 1.016 billion yuan in 2023, reflecting a year-on-year growth of 1.35%. However, the net profit attributable to shareholders decreased by 11.40% to 147 million yuan [1][5]. - For Q1 2024, the company expects a net profit of 35-37 million yuan, indicating a significant year-on-year growth of 80%-90% [1]. - The company has strategically invested 5 million yuan in Beijing Yicheng Gaoke Technology Development Co., Ltd., focusing on the AIoT industry and expanding its presence in the smart connected vehicle market [1][3]. Financial Performance - The company reported a comprehensive gross margin of 40.40% for 2023, an increase of 5.69 percentage points year-on-year, attributed to factors such as self-developed modules replacing outsourced ones and a higher proportion of high-margin overseas orders [1]. - Revenue projections for 2023-2025 are 1.016 billion, 1.543 billion, and 1.987 billion yuan, respectively, with corresponding EPS of 0.32, 0.46, and 0.58 yuan [5][7]. - The company’s gross margin is expected to remain at a favorable level due to cost reduction and improved procurement conditions [1]. Market Expansion - The company is actively expanding its overseas market presence, with a nearly 10 million yuan increase in sales expenses in 2023 to support this initiative [4]. - A new production line in Vietnam is expected to increase total production capacity by 20%-30%, with an anticipated annual output exceeding 7 million units [4].