Group 1 - The core viewpoint of the article is that Meige Intelligent (002881.SZ) has submitted a prospectus to the Hong Kong Stock Exchange for a main board listing, aiming for a dual listing in both A-share and H-share markets [1] - Meige Intelligent is a leading global provider of wireless communication modules and solutions, focusing on high-performance intelligent modules to promote the application of AI and 5G communication [1] - According to Frost & Sullivan, Meige Intelligent ranks fourth in the global wireless communication module industry by revenue in 2024 [1] Group 2 - For the fiscal year ending December 31, 2024, Meige Intelligent reported revenue of approximately 2.941 billion RMB, a year-on-year increase of about 37.0%, and a net profit of approximately 134 million RMB, a year-on-year increase of about 114.6% [1] - In the first quarter of 2025, Meige Intelligent's revenue was 999.7 million RMB, a year-on-year increase of 73.6%, and the net profit attributable to shareholders was 46.3 million RMB, a year-on-year increase of 616% [1] - However, the company is experiencing negative cash flow from operating activities, with a net outflow of 66.89 million RMB in the first quarter of 2025 [1] Group 3 - The negative cash flow situation is influenced by a significant increase in accounts receivable, which reached 1.016 billion RMB for the full year of 2024 and 1.296 billion RMB for the first quarter of 2025, representing year-on-year growth of approximately 54.08% and 102.64%, respectively [2] - The prospectus indicates that fluctuations and extensions in the turnover of trade, notes, and other receivables may adversely affect the company's cash flow and liquidity [2] Group 4 - As of the end of the first quarter of 2025, Meige Intelligent's cash and cash equivalents decreased by 7% year-on-year to 452 million RMB [3]

Investment Rating - The report maintains a rating of "Buy" for the company [8] Core Views - The company achieved a record high revenue of 2.941 billion RMB in 2024, representing a year-on-year growth of 37%, with a net profit attributable to shareholders of 136 million RMB, up 110% year-on-year [1][2] - In Q1 2025, the company reported revenue of 999.7 million RMB, marking a historical high for a single quarter, with a year-on-year increase of 74% and a net profit of 46 million RMB, reflecting a significant growth of 616% year-on-year [1][2] - The report expresses optimism about the company's growth opportunities in FWA, automotive, and edge AI sectors, leading to the maintained "Buy" rating [1][5] Revenue and Profitability - In 2024, the company's revenue from wireless communication modules and solutions was 2.808 billion RMB, a 37% increase year-on-year, with domestic revenue reaching 2.138 billion RMB, up 43% year-on-year [2] - The overall gross margin for 2024 was 17%, down 2 percentage points year-on-year, while Q1 2025 gross margin was 15%, down 1 percentage point year-on-year, attributed to changes in revenue structure [3] Market Demand and Future Outlook - The report anticipates a continued recovery in market demand, particularly in FWA and automotive sectors, which is expected to drive rapid growth in the company's performance [4] - The company is actively expanding its presence in smart modules and computing modules, with significant investments in 5G smart cockpit modules and high-performance AI modules [4] Financial Forecasts - The report revises upward the net profit forecasts for 2025 and 2026 to 181 million RMB and 229 million RMB respectively, with a target price set at 51.93 RMB, reflecting a price-to-earnings ratio of 75x for 2025 [5][7]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 51.93 RMB [8][5]. Core Insights - The company achieved record high revenue in Q1 2025, with revenue of 9.97 billion RMB, a year-on-year increase of 74%, and a net profit of 0.46 billion RMB, reflecting a significant growth of 616% year-on-year [1]. - The company is well-positioned to capitalize on growth opportunities in FWA, automotive, and edge AI sectors, leading to an optimistic outlook for future performance [1][4]. - The company has effectively controlled costs, with a decrease in expense ratios across sales, management, and R&D, indicating a focus on cost efficiency and scale effects [3]. Revenue and Profitability - In 2024, the company's total revenue reached 29.41 billion RMB, a 37% increase year-on-year, with a net profit of 1.36 billion RMB, up 110% year-on-year [1][2]. - The revenue from wireless communication modules and solutions was 28.08 billion RMB in 2024, also reflecting a 37% year-on-year growth, driven by demand in the smart connected vehicle sector [2]. - The overall gross margin for 2024 was 17%, down 2 percentage points year-on-year, while Q1 2025 saw a gross margin of 15%, down 1 percentage point year-on-year [3]. Market Demand and Future Outlook - The report anticipates a continued recovery in market demand, particularly in FWA and automotive sectors, which is expected to drive rapid growth in the company's performance [4]. - The company is actively expanding its presence in high-performance AI modules and smart modules, with significant investments in 5G smart cockpit modules and V2X modules [4]. - The edge computing applications are expected to open new growth avenues for the company's computing module business [4]. Financial Projections - The company’s projected net profits for 2025, 2026, and 2027 are 1.81 billion RMB, 2.29 billion RMB, and 2.83 billion RMB respectively, reflecting an upward revision of 22% and 25% for 2025 and 2026 [5]. - The expected revenue growth rates for the upcoming years are 31.70% for 2025 and 20.82% for 2026 [7]. - The company’s PE ratio is projected to be 75x for 2025, with a target price adjustment from 31.27 RMB to 51.93 RMB [5].