MeiG(SZ:002881) KAIYUAN SECURITIES·2024-04-26 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company experienced a slight pressure on performance in 2023, with total revenue of 2.147 billion yuan, a year-on-year decrease of 6.88%, and a net profit attributable to shareholders of 65 million yuan, down 49.54% year-on-year. However, the first quarter of 2024 showed signs of recovery with a total revenue of 574 million yuan, a year-on-year increase of 29.65% [10] - The company is expected to see significant growth in the coming years, with projected net profits of 149 million yuan, 189 million yuan, and 237 million yuan for 2024, 2025, and 2026 respectively, corresponding to EPS of 0.57, 0.72, and 0.91 yuan per share [10] - The company is actively expanding into new verticals, including smart connected vehicles and IoT applications, which are expected to drive future growth [12] Financial Summary - Revenue and Profitability: - 2022A: Revenue of 2,306 million yuan, 2023A: 2,147 million yuan, 2024E: 2,732 million yuan, 2025E: 3,280 million yuan, 2026E: 3,904 million yuan [3] - Net profit attributable to shareholders: 2022A: 128 million yuan, 2023A: 65 million yuan, 2024E: 149 million yuan, 2025E: 189 million yuan, 2026E: 237 million yuan [3] - Gross margin: 2023A: 19.2%, expected to be 18.4% in 2024E [3] - Valuation Metrics: - P/E ratio: 2023A: 85.1, 2024E: 36.7, 2025E: 29.0, 2026E: 23.1 [3] - P/B ratio: 2023A: 3.7, 2024E: 3.4, 2025E: 3.0, 2026E: 2.7 [3] Market and Product Development - The company is focusing on optimizing its product structure, which has led to an increase in gross margin. The revenue from overseas markets has also shown significant growth, with a 20.27% increase year-on-year [11] - The company is expanding its product offerings in high-performance modules for advanced driver assistance systems and is collaborating with IoT clients in North America, Japan, and Europe [12]