Megmeet(SZ:002851)2026-01-22 02:44Summary of Megmeet (002851.SZ) Conference Call Company Overview - Company: Megmeet (002851.SZ) - Industry: AI Robotics & Power Supply Key Points Industry Outlook - 2026 as a Pivotal Year: Megmeet anticipates significant growth in AI server power supply shipments in 2026, driven by an expanded product portfolio and deeper engagements with major Cloud Service Providers (CSPs) [1][2] - Initial Shipments: The company has begun initial shipments of server power products, including 5.5kW Power Supply Units (PSUs) and various power shelves, although specific shipment sizes were not disclosed [1] Business Model and Engagement - Shift in Engagement: The business model is transitioning from engaging Original Design Manufacturers (ODMs) to direct engagement with CSPs, requiring Megmeet to pass stringent customization tests to gain vendor codes [2] - CSP Relationships: The company is actively engaging with major CSPs in the US and China to secure more vendor codes [2] Execution Challenges - Production Ramp-Up: Megmeet faces challenges in transitioning from R&D to mass production, with a focus on tracking production efficiency and field performance post-deployment [3][6] - Complex Supply Chains: Managing over 200 suppliers and 1,000 components presents significant challenges, particularly in ensuring quality control for AI-grade components [6] Competitive Landscape - Gap with Global Leaders: Megmeet acknowledges a gap in R&D strength and manufacturing readiness compared to global leaders like Delta Electronics, but is catching up by launching next-gen products ahead of the adoption timeline [7] - Co-Design Engagement: Direct co-design engagement with Nvidia and end-users is seen as a competitive advantage [7] Product Development - Next-Gen Products: The company plans to launch official samples of 18kW PSUs and 3U 110kW power shelves in 1Q26, with 800V DC power racks expected in mid-2026 [8] - Technical Barriers: Transitioning to 800V DC architecture faces multiple technical challenges, making mass production in 2026 less likely [8] Financial Outlook - Margin Recovery: Megmeet expects gradual net margin recovery driven by a better product mix and improved operating leverage as the server power supply business scales [9] - Overseas Revenue Target: The company aims for 60% of total revenue to come from overseas markets, up from approximately 40% currently [9] Investment Thesis - Structural Transformation: Megmeet is transforming from an automation specialist to a contender in the global AI server power supply market, with a forecasted 5% market share by 2030 [10] - Valuation: The 12-month target price is set at Rmb86.8, indicating a downside potential of 16.1% from the current price of Rmb103.5 [14] Risks - Market Share Dynamics: Risks include the pace of market share gain within the NVIDIA ecosystem and the execution on mass production [13] - R&D Cycle Variability: The length of R&D cycles for 800V DC products and industry adoption rates also pose risks [13] Additional Insights - Investment Banking Relationships: Goldman Sachs has investment banking relationships with a significant percentage of companies covered in its research, which may influence objectivity [3] - Market Cap and Financial Metrics: Megmeet's market cap is Rmb56.5 billion, with projected revenues increasing from Rmb8.17 billion in 2024 to Rmb16.62 billion by 2027 [14]