MeiG(SZ:002881) Tianfeng Securities·2025-05-06 08:46Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [7]. Core Views - The company has entered a high growth phase, driven by the recovery in the IoT sector and ongoing investments in edge AI, indicating a promising future growth trajectory [1]. - The company reported a significant increase in revenue and net profit for 2024, achieving an operating income of 2.94 billion yuan (YoY +36.98%) and a net profit of 136 million yuan (YoY +110.16%) [1]. - In Q1 2025, the company continued its strong growth, with revenue reaching 999 million yuan (YoY +73.57%) and net profit soaring to 46.3 million yuan (YoY +616.02%) [2]. Financial Performance - The company achieved a gross margin of 17.03% for FY24 and 14.54% for Q1 2025, with net margins improving to 4.57% and 4.64% respectively [3]. - The company has effectively managed expenses, leading to improved profitability metrics [3]. Business Expansion - The company has expanded its applications across various sectors, including drones, AR glasses, and robotics, showcasing its capabilities in edge AI [4][5]. - The company is collaborating with major players like Qualcomm to develop high-performance AI modules for various applications, indicating a strong position in the market [4][5]. Market Trends - The 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]. Financial Projections - The company is projected to achieve a net profit of 249 million yuan in 2025, with estimates of 353 million yuan in 2026 and 470 million yuan in 2027, reflecting a robust growth outlook [7][12].