Megmeet(002851) Changjiang Securities·2025-04-15 13:28Investment Rating - The report maintains a "Buy" rating for the company [9]. Core Insights - The company has demonstrated steady growth in its historical operating performance, with a compound annual growth rate (CAGR) exceeding 30% from 2014 to 2023. In the first three quarters of 2024, the company achieved revenue of 5.903 billion yuan, a year-on-year increase of 21.1% [2][5][16]. - The company is expanding its product offerings and enhancing its business resilience through horizontal diversification and acquisitions, while also accelerating its overseas market presence [5][25][41]. - The company's AIDC (Artificial Intelligence Data Center) power supply system is gradually forming, with significant growth potential in the long-term market space [2][8]. Summary by Sections Historical Performance - The company's revenue grew from 635 million yuan in 2014 to 6.754 billion yuan in 2023, with a CAGR of 30.1%. The net profit attributable to the parent company increased from 38 million yuan to 629 million yuan during the same period, achieving a CAGR of 36.7% [16][20]. Business Structure and Strategy - The company has a robust business structure characterized by a diverse range of products, including communication power supplies, server power supplies, medical power supplies, and more. This diversification helps mitigate risks associated with reliance on a single product line [25][29]. - The company has adopted a dual approach of internal development and external acquisitions to enhance its growth trajectory. It has successfully entered various sectors, including smart home appliances and electric vehicle control systems [32][36]. Market Position and Competitive Advantage - The company is positioned as the only enterprise in mainland China collaborating with NVIDIA on power supply solutions, which is expected to be a new growth point for the company [8][9]. - The company has established a strong operational framework, with a high level of efficiency reflected in its sales per employee, which reached 10.95 million yuan in 2023, ranking second in the industry [22][73]. Future Growth Potential - The AIDC server power supply market is projected to grow significantly, with the power demand driven by the exponential growth of AI models. The company is well-positioned to capitalize on this trend through its innovative power supply solutions [7][8]. - The company is expected to see its net profit attributable to the parent company reach 562 million yuan, 951 million yuan, and 1.383 billion yuan for the years 2024 to 2026, respectively, corresponding to a price-to-earnings ratio of 48.9x, 28.9x, and 19.9x [8].