MeiG Smart Technology (002881) Q3 2024 earnings summary

Executive summary

• Q3 revenue reached ¥876.48 million, up 63.29% year-over-year and 19.84% sequentially, marking a historical high.

• Net profit attributable to shareholders for Q3 was ¥57.87 million, up 189.22% year-over-year and 114.27% sequentially.

• Strong demand for AI modules, customized IoT products, and FWA solutions drove growth in both domestic and overseas markets.

Financial highlights

• Year-to-date revenue was ¥2.18 billion, up 39.90% year-over-year.

• Year-to-date net profit attributable to shareholders was ¥91.36 million, up 33.05% year-over-year.

• Year-to-date net profit excluding non-recurring items was ¥90.51 million, up 109.72% year-over-year.

• Q3 gross margin was 15.75%, down 1.55 percentage points sequentially due to product mix.

• Operating cash flow for the period was -¥41.66 million, a 49.33% decrease year-over-year, but sequentially improved.

Outlook and guidance

• AI module and FWA product demand expected to remain strong, with continued expansion in overseas markets.

• Domestic IoT demand has returned to a growth trajectory.