Quectel (836430) IPO Review: The 9th New Third Board Enterprise in 2019

Quectel (836430) IPO Review: The 9th New Third Board Enterprise in 2019
Event: According to the official website of the China Securities Regulatory Commission, on May 30, 2019, the new third board company, China Telecom Communications, had an IPO meeting. After the current session, the three-board enterprise Quectel Communications 夜来香体验网 excluded the “three types of shareholders” and queued for 525 days: Quectel Communications (836430.OC) filed an IPO on December 21, 2017, lined up for 525 days, and terminated 29 new shareholders, including 11 natural persons and 18 legal persons.The trading period is only 3 days, and the turnover rate is 21%, excluding “three types of shareholders”. Before the IPO review, Quectel was the ninth new board company this year. In January, the 17th Dafa Examination Committee reviewed a total of eight start-up companies, and five companies passed the review and passed 62.50%.Among these 8 companies, 1 is from NEEQ, accounting for 12.50%. Since February, the “Dafa Review Committee” has been re-elected, and the IPO has been suspended.From March to the present, the 18th session of the Audit Committee has started to audit the starting companies.Comprehensive 1 month to date IPO situation: IPO through merger87.80%, the meeting rate continues to rise.From April 18th to May 23rd, all the 16 companies participating in the meeting attended the meeting, and the IPO in the past month passed 100% through restructuring. Quectel mainly provides cellular communication modules and solutions in the field of Internet of Things: the company’s LTE series (4G category) product revenue accounts for about 50%, and the company’s LGSM / GPRS series product revenue accounts for about 27.7%.The company’s products are widely used in wireless payment, vehicle transportation, smart energy, smart cities, smart security, wireless gateways, industrial applications, medical health and agricultural environments.The Internet of Things will become a huge market with a scale of over trillions.According to IDC’s forecast, it is expected that by 2020, the global IoT market size will reset to USD 655.8 billion in 2014 and increase to 1.$ 7 trillion (17% CAGR).With the rapid development of the market scale of the IoT industry, the company’s operating income and net profit have achieved rapid growth. In 2015, 2016 and 2017, the operating income was 3 respectively.03 billion, 5.7.3 billion and 16.610,000 yuan, net profit was 26.3 million yuan, 25 million yuan and 86.37 million yuan.Quectel is comparable to the company Guanghetong PE estimated at about 64.53 times.Another comparable company of the company is not listed. Risk reminders: technology upgrades and industry risks, the risk of rejection of inventories, and the risk of falling gross margin