Megmeet(002851)2025-03-18 12:08Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market index [4]. Core Insights - The company is a leading supplier in the electronic and electrical field, with a diversified product portfolio that includes smart home appliance controls, industrial automation, and precision connection products [1]. - The company has made significant advancements in AI power supply development, positioning itself as a key player in the data center and AI server power supply market [8]. - The company has entered the NVIDIA server supplier list, enhancing its prospects in the AI power supply business [8]. Financial Forecast and Valuation - Projected revenues for 2024, 2025, and 2026 are expected to be 85.15 billion, 109.50 billion, and 137.40 billion CNY, representing year-over-year growth rates of 26.07%, 28.60%, and 25.48% respectively [2]. - Expected net profits for the same period are forecasted at 6.35 billion, 8.21 billion, and 10.00 billion CNY, with year-over-year growth rates of 0.94%, 29.26%, and 21.82% [2]. - The earnings per share (EPS) is projected to be 1.16, 1.50, and 1.83 CNY, with corresponding price-to-earnings (P/E) ratios of 58.3, 45.1, and 37.0 [2]. Business Performance - In the first three quarters of 2024, the company reported a revenue of 59.0 billion CNY, a year-over-year increase of 21.1%, and a net profit of 3.6 billion CNY, reflecting an 18.1% growth [8]. - The company has achieved a leading position in high-power, high-efficiency network power technology, which supports its future growth [8]. - The introduction of innovative power solutions compatible with NVIDIA's MGX platform is expected to enhance the company's performance [8].