Shenzhen Megmeet Electrical (002851.SZ): AIDC ramps; 1H26 recurring net profit miss

According to Megmeet's 1H26 results, revenue rose 29.7% y-y to CNY6.06bn and net profit increased 45.2% y-y to CNY0.25bn, while recurring net profit fell 16.1% y-y to CNY0.12bn. Revenue was in line with our forecast, but recurring net profit was below, mainly due to slower-than-expected qualification and ramp-up of power products, FX headwinds and higher electronic component costs. All business segments recorded y-y revenue growth. Power-product revenue surged 60.9% y-y to CNY1.84bn, making it the largest growth driver, mainly reflecting continuous volume deliveries of AIDC power products since 1Q26. Smart home appliance revenue rose 20.2% y-y to CNY2.56bn, and precision connectivity revenue rose 47.8%. In 2Q26, recurring net profit increased 93.7% q-q, showing a marked improvement from 1Q26. Megmeet has established a full-stack AIDC power-supply portfolio and is one of the AIDC power suppliers recommended by a leading overseas AI infrastructure company;