Qualcomm(US:QCOM) Huachuang Securities·2024-05-10 11:32Investment Rating - The report assigns a positive outlook for Qualcomm, indicating a strong performance in the automotive and mobile sectors, with expectations for continued growth in these areas [2][3]. Core Insights - Qualcomm reported Q2 FY2024 revenues of $9.389 billion, a year-over-year increase of 1.23%, and a net profit of $2.326 billion, reflecting a significant year-over-year growth of 36.5% [3][7]. - The automotive business has shown robust growth, with revenues increasing by 35% year-over-year to $603 million, marking a record for three consecutive quarters [3][12]. - The company anticipates global smartphone sales to remain flat or slightly increase in 2024, with a projected growth of 5% to 15% in 5G smartphone sales [3][21]. Summary by Sections 1. Q1 FY2024 Performance - Qualcomm achieved revenues of $9.389 billion, with a net profit of $2.326 billion and a gross margin of 56.27% [3][7]. - The mobile chip business generated $6.18 billion, reflecting a year-over-year increase of 1.23% [10]. 2. Revenue Breakdown - QCT segment revenues were $8.026 billion, with mobile business revenues at $6.18 billion [9][10]. - Automotive revenues reached $603 million, showing a year-over-year growth of 34.9% [12]. 3. Business Line Developments - The automotive segment is expected to exceed $4 billion in revenue by FY2026, with a design-win pipeline of approximately $45 billion [17][27]. - The mobile segment continues to lead in high-end smartphone performance, with strong demand in the Chinese market, where OEM revenues grew over 40% year-over-year [18][30]. 4. Company Guidance - For Q2 FY2024, Qualcomm expects revenues between $8.8 billion and $9.6 billion, with an EPS forecast of $2.15 to $2.35 [21][28]. - The QCT segment is projected to generate revenues of $7.5 billion to $8.1 billion, while the QTL segment is expected to bring in $1.2 billion to $1.4 billion [22][23].