FIBOCOM(SZ:300638) East Money Securities·2024-05-28 08:00Investment Rating - The report maintains an "Accumulate" rating for the company [17]. Core Viewpoints - The company is actively developing edge AI and intelligent robotics, showcasing its capabilities at industry events and launching platforms to enhance AI applications [1]. - The first quarter of 2024 saw the company achieve record-high revenues and net profits, indicating strong operational performance and growth potential [2]. - The company is focusing on high-margin vertical markets such as automotive, FWA, and PC, which have clear competitive landscapes and high entry barriers [2]. Summary by Sections Financial Performance - In Q1 2024, the company reported revenue of 2.123 billion, a year-on-year increase of 17.11% and a quarter-on-quarter increase of 17.81%, marking a historical quarterly high [2]. - The net profit attributable to the parent company for Q1 2024 was 174 million, reflecting a year-on-year growth of 27.35% and a quarter-on-quarter growth of 70.61%, also a historical high [2]. - The comprehensive gross margin for Q1 2024 was 21.52%, up 0.64% year-on-year, influenced by a favorable shipment structure [2]. Market Position and Strategy - The company is positioned as a leading provider of wireless communication modules and solutions, with a diverse product range that supports various industries in their digital transformation [23]. - The company aims to enhance its R&D investment in computing power and AI products, which are becoming crucial trends in the industry, to improve competitiveness and market share [23]. - The report highlights the company's strong market position in vertical sectors, which are expected to drive future growth [2][23]. Industry Outlook - The global IoT module market is anticipated to recover in the second half of 2024, driven by increasing demand in smart metering, POS, and automotive sectors [7]. - The automotive sector is expected to see significant growth in connected vehicles, with projections indicating that by 2030, nearly all new vehicles sold will feature pre-installed 5G connectivity [7].