Quectel(603236) 山西证券·2024-11-06 10:24Investment Rating - The report upgrades the investment rating to "Accumulate-A" based on expected performance exceeding the benchmark index by 5%-15% [10]. Core Insights - The company has shown significant revenue growth, with a 32.9% year-on-year increase in revenue for the first three quarters of 2024, reaching 13.25 billion yuan, and a remarkable 2078.7% increase in net profit [2][10]. - The company is positioned to benefit from the recovery in the market and its refined management strategies, particularly in the automotive, gateway, payment, and PC sectors [3][10]. - The introduction of new products and platforms, such as the industrial smart brand Baowita, is expected to enhance the company's market value and expand its service offerings [8][9]. Financial Performance - For Q3 2024, the company reported a revenue of 5 billion yuan, a year-on-year increase of 44.6% and a quarter-on-quarter increase of 16.4% [2]. - The gross margin for the first three quarters was 17.93%, slightly down by 0.44 percentage points year-on-year, while the net profit margin improved by 2.84 percentage points to 2.62% [2][4]. - The company anticipates a recovery in profitability, with projected net profits for 2024-2026 expected to grow significantly, reaching 5.26 billion yuan in 2024, a 479.5% increase year-on-year [10]. Market Position and Strategy - The company maintains a leading position in the global cellular IoT module market, with a market share of 36.5% in Q2 2024, driven by strong demand from China and India [3]. - The focus on edge AI applications and the development of intelligent modules and IoT platforms is expected to unlock new growth opportunities [9]. - The company is actively collaborating with Qualcomm to launch new AI intelligent module products, enhancing its capabilities in various industrial applications [9].