Megmeet(SZ:002851)2025-09-04 15:08Investment Rating - The report maintains a "BUY" rating for Shenzhen Megmeet with a price objective (PO) raised to RMB 105 from RMB 60 [3][12][24]. Core Insights - The AI server power supply business is expected to experience significant revenue growth, contributing RMB 0.3 billion, RMB 4.0 billion, and RMB 11.6 billion in 2025, 2026, and 2027 respectively, which will account for 3%, 26%, and 48% of total revenue [3][14][22]. - The report highlights the increasing content value of power supplies in the GB300 AI server, which is projected to enhance Megmeet's market size and revenue potential [2][12][22]. - Adjustments to earnings estimates reflect a decrease of 32% for 2025, an increase of 14% for 2026, and an increase of 46% for 2027, indicating a stronger growth outlook in the latter years [3][19][22]. Revenue and Earnings Forecast - Revenue projections for Megmeet are set at RMB 9.892 billion for 2025, RMB 15.228 billion for 2026, and RMB 24.219 billion for 2027, with a notable increase in the AI server power supply segment [3][19][22]. - The expected earnings per share (EPS) for 2025 is revised to RMB 0.78, with significant growth anticipated in subsequent years, reaching RMB 3.96 by 2027 [3][19][22]. Market Position and Growth Drivers - Megmeet is positioned as a leading player in the power supply market, ranking No. 3 globally in sales value as of 2024, with a diverse portfolio across various industries [11][12]. - The report emphasizes the strong growth potential in the AI server power supply sector, driven by rising AI capital expenditures and the company's expanding customer base [12][22][24]. Valuation Methodology - The price objective of RMB 105 is derived using a sum-of-the-parts (SOTP) valuation method, reflecting the stable growth of the legacy business and the robust potential of the AI server power supply segment [3][24][25].