MeiG(SZ:002881) KAIYUAN SECURITIES·2024-10-29 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has experienced rapid growth in overseas business, with a significant increase in profitability quarter by quarter. The revenue for the first three quarters of 2024 reached 2.182 billion yuan, a year-on-year increase of 39.90%, and the net profit attributable to shareholders was 91 million yuan, up 33.05% year-on-year. The establishment of an AI ecosystem is accelerating, leading to a rapid increase in application scenarios and shipment volumes of high-performance AI modules [4][5]. - The company is expected to maintain its performance forecasts for 2024-2026, with projected net profits of 149 million, 189 million, and 237 million yuan for the respective years, corresponding to EPS of 0.57, 0.72, and 0.91 yuan per share, with PE ratios of 43.8, 34.5, and 27.5 times [4][5]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 876 million yuan, a year-on-year increase of 63.29%, and a net profit of 58 million yuan, up 189.22% year-on-year. The net profit margin improved significantly, with net profit margins for Q1-Q3 being 1.01%, 3.69%, and 6.58% respectively [5]. - The company’s gross margin and net margin for the first three quarters of 2024 were 16.25% and 4.15%, respectively, showing a decrease of 3.00 percentage points and 0.22 percentage points year-on-year [5]. Business Segments - The overseas business has shown rapid growth, with domestic and international revenues of 1.487 billion and 695 million yuan, respectively, reflecting year-on-year increases of 35.43% and 50.43%. The company is focusing on intelligent modules and computing modules, with significant growth in the smart connected vehicle sector [6]. - The company has launched the world's first 5G + Wi-Fi 7 dual high-speed network layout solution for smart handheld terminals and is experiencing large-scale production and shipment of 5G products in regions such as the United States, Japan, and Europe [6].