POCO(SZ:300811) Dongxing Securities·2024-10-23 11:00Investment Rating - The report maintains a "Recommended" rating for the company [3][6][13]. Core Views - The company has entered a strong growth phase, driven by three growth curves: chip inductors, soft magnetic powder cores, and metal powder businesses [2][3][6]. - For Q3 2024, the company achieved a revenue of 1.227 billion yuan, a year-on-year increase of 43.63%, and a net profit of 281 million yuan, up 55.41% year-on-year [3][6]. - The chip inductor business has shown explosive growth, with a CAGR of 280.2% from 2020 to 2023, and its revenue in H1 2024 reached 195 million yuan, a quarter-on-quarter increase of 138.92% [3][4][6]. - The alloy soft magnetic powder core business continues to grow steadily, with a revenue increase of 7.03% to 586 million yuan in H1 2024 [3][4][6]. - The metal soft magnetic powder business is being developed as a third growth driver, with a revenue increase of 25.26% to 13.859 million yuan in H1 2024 [4][6]. Summary by Sections Financial Performance - For Q3 2024, the company reported a gross margin of 40.63% and a net profit margin of 23.23% [6]. - The return on equity (ROE) increased to 16.09%, reflecting strong product advantages and cost control [6]. - The company’s asset-liability ratio decreased to 22.11%, indicating strong expansion capability [6]. Growth Drivers - The chip inductor business is expected to contribute significantly to the company's growth, with plans to expand production capacity from 5 million to 10-15 million pieces per month by 2024 [3][4][6]. - The company is also investing 300 million yuan in a new high-end integrated inductor project, enhancing its production capabilities [3][4][6]. - The alloy soft magnetic powder core business is recognized by major clients like BYD and Huawei, further solidifying its market position [3][4][6]. Future Projections - Revenue projections for 2024-2026 are 1.733 billion yuan, 2.296 billion yuan, and 2.794 billion yuan, respectively, with corresponding net profits of 384 million yuan, 524 million yuan, and 650 million yuan [6][7][8]. - The company is expected to maintain a strong growth trajectory, with a projected EPS of 1.93 yuan, 2.63 yuan, and 3.27 yuan for the same period [6][7][8].