MeiG(002881) Minsheng Securities·2024-04-25 11:02Investment Rating - The report maintains a "Recommended" rating for the company [17]. Core Views - The company experienced significant revenue recovery since Q4 2023, with a notable increase in revenue driven by overseas demand and a return to growth in domestic sales. The Q4 2023 revenue was 588 million yuan, up 16.08% year-on-year, and Q1 2024 revenue was 575 million yuan, up 29.65% year-on-year [17]. - The demand for IoT is strong, with the number of cellular IoT users in China reaching 2.332 billion, accounting for 57.5% of mobile terminal connections, reflecting a year-on-year growth of 26.4% [17]. - The automotive product sector continues to innovate, with the company launching multiple 5G smart module products that support various intelligent features for different vehicle models [17]. - The company is expected to benefit from the ongoing development of the IoT industry and is projected to achieve revenues of 2.8 billion yuan, 3.483 billion yuan, and 4.318 billion yuan from 2024 to 2026, with corresponding net profits of 178 million yuan, 211 million yuan, and 263 million yuan [17]. Financial Summary - In 2023, the company achieved a total revenue of 2.147 billion yuan, a decrease of 6.88% year-on-year, and a net profit of 65 million yuan, down 49.54% year-on-year [17]. - The projected financials for 2024 include a revenue of 2.8 billion yuan and a net profit of 178 million yuan, with growth rates of 30.4% and 175.8% respectively [4][18]. - The company's gross margin for Q1 2024 was 15.69%, down from 18.90% in Q4 2023, primarily due to a concentration of lower-margin products being shipped during the reporting period [17].