Queclink(SZ:300590) Guotou Securities·2024-04-10 16:00Investment Rating - The report assigns a "Buy-A" investment rating to the company, maintaining this rating with a 6-month target price of 12.75 CNY, while the current stock price is 10.78 CNY as of April 9, 2024 [2][22]. Core Insights - The company achieved a revenue of 1.016 billion CNY in 2023, reflecting a slight year-on-year growth of 1.35%. However, revenue from two-wheeled vehicle-related businesses declined due to unmet expectations in smart vehicle integration. The market for two-wheeled vehicle smart upgrades remains significant, with a slowdown in revenue decline noted since Q3 2023. The company is enhancing its global sales network and expects substantial performance improvement in Q4 2023, with a projected revenue of 364 million CNY, a year-on-year increase of 33.49%, and a net profit of 49 million CNY, up 85.02% year-on-year [8][22][32]. - For Q1 2024, the company anticipates a net profit of 35-37 million CNY, representing a year-on-year growth of 80%-90%, and a non-GAAP net profit of 33-36 million CNY, indicating a growth of 110%-130% [32][22]. - The company has been recognized as one of the top 100 IoT companies in China, highlighting its leadership position in the industry. A strategic partnership was established with Yicheng Gaoke to develop AI-enabled products for the smart connected vehicle market [21][22]. Financial Summary - The company’s projected revenues for 2023, 2024, and 2025 are 1.016 billion CNY, 1.378 billion CNY, and 1.840 billion CNY, respectively. Corresponding net profits are expected to be 146.7 million CNY, 231.9 million CNY, and 318.7 million CNY, with EPS estimates of 0.32 CNY, 0.51 CNY, and 0.70 CNY [22][23]. - The gross margin for 2023 was reported at 40.40%, an increase of 5.69 percentage points year-on-year, attributed to cost reductions and a higher proportion of high-margin overseas orders [20][22]. - The company launched 18 new products in 2023, which contributed to the improvement in gross margins and established a solid foundation for future growth [20][22].