MeiG(SZ:002881) Tianfeng Securities·2025-02-03 01:27Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6]. Core Views - The company is expected to achieve a net profit of 112 million to 142 million yuan in 2024, representing a year-on-year growth of 73.62% to 120.12%. The non-GAAP net profit is projected to be between 109 million and 139 million yuan, with a year-on-year increase of 194.30% to 275.45% [1]. - The company is anticipated to continue its profit growth momentum into 2025, with a median profit estimate of 127 million yuan for 2024, reflecting a year-on-year increase of 96.87% [2]. - The edge AI module products designed for terminal and edge AI applications are expected to open up long-term growth opportunities, with AI computing power ranging from 0.2T to 48T [3]. Financial Performance and Forecast - The company’s revenue is projected to grow from 2.14 billion yuan in 2023 to 2.94 billion yuan in 2024, marking a growth rate of 36.72% [9]. - The net profit for 2024 is estimated at 127 million yuan, with significant growth expected in subsequent years, reaching 252 million yuan in 2025 and 353 million yuan in 2026 [11]. - The company’s EBITDA is forecasted to be 437.52 million yuan in 2024, with a slight decrease in 2025 [9]. Market Opportunities - The company is expanding its applications in various sectors, including drones, AR glasses, and robotics, showcasing its edge AI capabilities [4][5]. - The ongoing push for smart driving solutions by companies like BYD is expected to enhance the penetration of 5G smart modules, which could benefit the company [6]. Valuation Metrics - The company’s price-to-earnings ratio (P/E) is projected to decrease from 82.98 in 2024 to 41.76 in 2025, indicating an improving valuation as earnings grow [9]. - The price-to-book ratio (P/B) is expected to decline from 6.68 in 2024 to 5.91 in 2025, reflecting a more attractive valuation over time [9].