Megmeet(SZ:002851) HTSC·2024-10-18 02:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 36.52 [1][3]. Core Views - The partnership with NVIDIA for server power products is expected to accelerate the company's business growth, with the NVL72 product anticipated to launch next year [2][3]. - The AI technology boom is projected to create significant market space and growth potential for the server power market, benefiting the company's server power business [3][4]. - The company is positioned as the only mainland power supplier in NVIDIA's supply chain, enhancing its brand strength and potential for future orders [4][5]. - The company has made substantial investments in high-power power supply technology, establishing itself as a comprehensive power supplier with both domestic and international project experience [5]. Financial Summary - The company's revenue is projected to grow from RMB 6,754 million in 2023 to RMB 12,662 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 23.76% [6][10]. - The net profit attributable to the parent company is expected to increase from RMB 629.32 million in 2023 to RMB 1,081 million in 2026, with a notable growth rate of 33.13% in 2023 [6][10]. - The earnings per share (EPS) is forecasted to rise from RMB 1.25 in 2023 to RMB 2.14 in 2026 [10]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 24.65 in 2023 to 14.36 in 2026, indicating an attractive valuation over time [10].