Investment Summary - Company achieved a revenue of 18.594 billion with a year-on-year growth of 34.14% and a net profit of 588 million, reflecting a significant increase of 548.49% [1] - In Q4 alone, the company reported a revenue of 5.348 billion, up 37.33% year-on-year, and a net profit of 2.3157 billion, which is a 112.97% increase [1] Core Insights - Revenue growth is driven by domestic business, with domestic revenue accounting for 47.72% of total revenue, an increase of 0.32 percentage points from the previous year [2] - The company has improved its cost control, with sales, management, and R&D expense ratios decreasing by 0.50, 0.91, and 2.60 percentage points respectively compared to the previous year [2] - Profitability metrics have improved, with operating profit margin and net profit margin reaching 3.15% and 3.11%, up 2.56 and 2.50 percentage points year-on-year [2] Market Dynamics - The impact of tariffs is less than expected, with only 0.8% of total revenue coming from direct exports to the U.S. The company has a global procurement system to mitigate tariff impacts [3] - The growth drivers for the company include the expansion of the IoT market and the rapid deployment of smart terminals, which are expected to significantly boost business [3] Investment Outlook - The company is positioned to benefit from the rapid growth in edge AI applications and is expected to achieve revenues of 22.585 billion, 26.769 billion, and 31.725 billion from 2025 to 2027, with net profits projected at 743 million, 952 million, and 1.125 billion respectively [4] - The expected growth rates for net profit are 26.36%, 28.05%, and 18.21% for the same period, with corresponding P/E ratios of 24.35, 19.01, and 16.08 [4]

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company experienced significant growth in Q1 2025, with revenue reaching 52 billion RMB, a year-on-year increase of 32%, and a net profit of 2.1 billion RMB, reflecting a 287% increase [1] - The company is positioned as a leading global IoT module manufacturer, expected to benefit from a recovery in industry demand and long-term opportunities from edge/endpoint AI development [1][5] - The revenue from the module and antenna business in 2024 was 184 billion RMB, up 34% year-on-year, with both domestic and international markets showing strong performance [2] Summary by Sections Financial Performance - In 2024, the company's revenue was 186 billion RMB, a 34% increase year-on-year, and the net profit was 5.9 billion RMB, up 548% [1] - The comprehensive gross margin for 2024 was 17.6%, a slight decline of 1.3 percentage points, primarily due to increased orders from overseas strategic clients [3] - The company effectively controlled expenses, with sales, management, and R&D expense ratios decreasing year-on-year [3] Market Outlook - The IoT module market is expected to stabilize and improve as downstream demand recovers, with high-speed products like 5G cellular modules poised for growth in the AI era [4] - Long-term, the transition of AI computing capabilities to the edge is anticipated to enhance the value of IoT modules, shifting their role from "transmission" to "transmission + computation" [4] Valuation and Forecast - The earnings forecast for 2025-2027 has been revised upward, with projected net profits of 8.01 billion RMB, 9.59 billion RMB, and 11.28 billion RMB respectively [5] - The target price for the company is set at 91.79 RMB, based on a 30x PE ratio for 2025, reflecting the company's leading position in the IoT module market [5]