New Stock Analysis | MeiG Smart Technology: High computing power module increased 28 times in three years, leading AI head end to be revalued.

On February 11th, the official website of the Hong Kong Stock Exchange showed that MeiG Smart Technology Co., Ltd. ("MeiG Smart Technology") had passed the hearing of the Hong Kong Stock Exchange. The exclusive sponsor is CICC. It is believed that the two core logical lines running through MeiG Smart Technology's listing in Hong Kong and business development are: first, the industry dividend logic - the explosive growth of the endpoint AI driven high computing power module as the core growth engine, driving market share and performance growth; second, financial logic - continuous optimization of financial structure demonstrates development resilience. The explosive growth of endpoint AI drives growth, and high computing power modules build a leading position in the sub-sectors. The global endpoint AI market is experiencing explosive growth. According to Frost & Sullivan data, the global endpoint AI market is expected to reach 251.7 billion yuan by 2024, with a compound annual growth rate of 29.3% in the past five years. It is expected to exceed 1.22 trillion yuan by 2029, with a compound annual growth rate increasing to 39.6%. Behind this growth is the trend of AI models sinking to the endpoint - mainstream large models are launching small model versions with faster inference speed, less memory usage, and lower power consumption, enabling AI capabilities to be deployed directly on devices such as smartphones, smart cars, and IoT terminals. According to Counterpoint's forecast, embedded AI cellular modules accounted for 6% of the total shipment of cellular IoT modules in 2023, and this proportion will increase to 25% by 2030. This means that wireless communication modules have evolved from simple communication baseband components to AI SoCs integrated with CPU, GPU, and NPU, becoming the core carrier of endpoint AI. MeiG Smart Technology is one of the earliest domestic enterprises to enter the intelligent module track, and its business structure has undergone a fundamental transformation in the past three years. From 2022 to the first nine months of 2025, the proportion of intelligent modules and solutions revenue soared from 41.5% to 66.1%, becoming the absolute main force; while the traditional data transmission module business continued to shrink, with the proportion dropping from 55.1% to 31%. Among them, the high computing power intelligent module performed exceptionally well - the revenue surged from 35.055 million yuan in 2022 to 1.018 billion yuan in 2024, an increase of more than 28 times, with a compound annual growth rate of 449%, and the revenue proportion jumped from 1.5% to 34.2% in the first nine months of 2025. The core advantage of high computing power intelligent modules lies in their powerful AI acceleration capability. The product adopts an architecture with embedded system (SoC) processors and intelligent operating systems, with CPU and NPU providing no less than 8 TOPS computing power in cooperation, which can deploy generative AI applications on terminal devices, and is compatible with multiple communication methods such as 5G, Wi-Fi, and gigabit Ethernet. This technological capability enables it to have broad application space in high-growth areas such as intelligent cockpits, Siasun Robot&Automation, edge servers, AI retail, and industrial vision. With the first mover advantage in high computing power intelligent modules, MeiG Smart Technology has established an absolute leading position in multiple sub-markets. According to Frost & Sullivan data, the company's global market share of high computing power intelligent modules reached 29% in 2024, ranking first; the market share of 5G car modules reached 35.1%, also ranking first. In the global wireless communication module market as a whole, the company ranks fourth with a share of 6.4%, but has formed a differentiated competitive advantage in the high-growth intelligent module sub-sector. Behind this position is the continuous high-intensity investment in research and development. From 2022 to 2024, the company's research and development expenses were 190 million yuan, 210 million yuan, and 210 million yuan, accounting for 7%-10% of the income ratio. By the end of 2024, the company had 290 authorized patents in China, including 9 invention patents, and the proportion of research and development and technical personnel exceeded 80% annually, significantly higher than the industry average. Research and development results have gradually landed: the company's research and development team successfully ran the Stable Diffusion large model on high computing power modules for the first time and gradually supported other language models, laying a technical foundation for large-scale application of generative AI on module ends; in the 5G FWA field, the company launched innovative products such as 5G-A and 5G Redcap; in the intelligent cockpit field, the shipment of 5G intelligent modules is in a leading position in the industry. The financial data confirms the effectiveness of the strategic transformation. After experiencing a low point in performance in 2023 (revenue down 6.9%, net profit halved to 62.6 million yuan), the company rebounded strongly in 2024: revenue recovered to 2.941 billion yuan, a year-on-year increase of 37.0%; net profit rose to 134 million yuan, a year-on-year increase of 114.6%. In the first three quarters of 2025, the company continued to maintain a growth trend, achieving operating income of 2.821 billion yuan, a year-on-year increase of 29.30%; net profit attributable to the parent company was 113 million yuan, a year-on-year increase of 23.88%. In terms of application areas, smart connected vehicles have become the largest application scene, contributing 1.221 billion yuan in revenue in 2024, accounting for 41.5%. The overseas market also performed well, with overseas revenue in the first three quarters of 2025 reaching 960 million yuan, a year-on-year increase of 38.1%, mainly benefiting from the large-scale shipment of 5G products and intelligent products in overseas markets. The increase in the proportion of overseas business also has a positive impact on gross profit margin, with a 0.6 percentage point increase in gross profit margin in the third quarter of 2025, showing a trend of stabilization and improvement. Strong growth momentum and continuous optimization of financial structure demonstrate development resilience Under the push of the endpoint AI wave, MeiG Smart Technology has ushered in a historic development opportunity, with all operating indicators continuing to improve, demonstrating strong growth momentum and continuously optimized financial structure. While the company is expanding rapidly, cash flow management has made positive progress. In the third quarter of 2025, operating cash flow turned positive to 41.312 million yuan, signaling that the company's cash flow situation is entering an improvement channel. This shift is due to a series of measures taken by the company to strengthen receivables management and optimize operational capital allocation. With the expansion of business scale and optimization of customer structure, cash flow is expected to continue to improve, providing more abundant funding support for future research and development investment and business expansion. Moreover, the concentration of the company's customer base has increased, reflecting the high recognition of the company's product technology strength by core customers. In 2024, revenue from the largest customer reached 955 million yuan, and the customer is a leading domestic automotive and electronic component manufacturer, with a stable cooperative relationship and significant business synergies. In the field of intelligent connected vehicles, the deep integration with leading car manufacturers not only brings continuous stable orders, but also helps the company closely follow industry demands, iterate product technology, and consolidate its position in the 5G car module field with a global market share of 35.1%. A healthy customer structure provides strong guarantee for the company's performance growth. As a representative enterprise of the Fabless model, the company maintains long-term stable cooperation with leading EMS manufacturers such as Foxconn, and the supply chain system is mature and efficient. In 2024, the procurement amount from the top five suppliers accounted for 63.8%, and centralized procurement helps to leverage scale advantages and reduce procurement costs. For some of the chip purchases from US suppliers, the company has established a sound supply chain risk management mechanism to effectively diversify risks through diversified procurement channels, strengthening domestic chip adaptation, etc. Faced with fluctuations in memory chip prices, the company controls the impact of raw material prices within a reasonable range through strong cost pass-on capabilities and product pricing power. Although the overall gross profit margin has fluctuated in the short term, the core business profitability continues to strengthen. As the strategic focus of the company, the high computing power intelligent module's gross profit margin has increased from 14.5% to 19.1%, with a growth of 4.6 percentage points in three years, fully reflecting the company's technical premium capability and cost control level in this field. With the continuous increase in the proportion of high-margin products, the improvement effect of the gross profit margin brought by the optimization of product structure is gradually emerging. The decline in the gross profit margin of traditional data transmission module business is a natural process of industry development. The company has actively adjusted resources towards high value-added businesses, and the overall profitability is in an improvement channel. Overall, MeiG Smart Technology is in a period of high growth, and phase fluctuations in various operating indicators with business expansion are a normal phenomenon. The company has shown a positive trend in terms of rapid growth in revenue and profits, return to positive operating cash flow, deep binding with core customers, and increasing proportion of high-margin products. With the continuous expansion of endpoint AI application scenarios, the company, with its global leading position in the 5G car module and high computing power intelligent module fields, is expected to achieve higher quality growth in the process of industry dividend release.