Megmeet(002851) 长江证券·2024-11-18 07:25Investment Rating - The report maintains a "Buy" rating for Megmeet (002851 SZ) [9] Core Views - Megmeet achieved a 21% YoY revenue growth to RMB 5 903 billion in the first three quarters of 2024 despite a complex macroeconomic environment demonstrating the effectiveness of its core strategy and balanced risk approach [6][7] - Net profit attributable to the parent company decreased by 14 8% YoY to RMB 411 million in the first three quarters but increased by 3 9% YoY to RMB 97 million in Q3 [6] - Gross margin remained stable at 25 66% in the first three quarters up 0 57 percentage points YoY with Q3 gross margin at 25 28% [7] - R&D expenses increased significantly with the R&D expense ratio rising by 1 29 percentage points to 13 2% in Q3 reflecting the company's increased investment in innovation [7] - Inventory increased by 28 5% YoY to RMB 2 236 billion at the end of Q3 indicating strong delivery trends [8] Financial Performance - Revenue for Q3 2024 was RMB 1 892 billion a 19% YoY increase [6] - Net profit attributable to the parent company for Q3 2024 was RMB 97 million a 3 9% YoY increase [6] - Non-GAAP net profit for Q3 2024 was RMB 81 million a 16 3% YoY increase [6] - The company received other income of RMB 42 63 million in Q3 a 142 6% YoY increase mainly due to increased government subsidies [8] Future Projections - The report forecasts net profit attributable to the parent company of RMB 560 million and RMB 720 million for 2024 and 2025 respectively with corresponding valuations of approximately 45x and 35 5x [8] - The company's EPS is projected to be RMB 1 07 and RMB 1 36 for 2024 and 2025 respectively [18] - The P/E ratio is expected to be 45 33x and 35 50x for 2024 and 2025 respectively [18]