POCO(SZ:300811) Tianfeng Securities·2024-10-24 08:08Investment Rating - The report maintains a "Buy" rating for the company, with a target price reflecting a potential upside of 10%-20% over the next six months [5]. Core Insights - The company achieved a revenue of 1.227 billion yuan in the first three quarters of 2024, representing a year-over-year increase of 43.6%. The net profit attributable to the parent company was 286 million yuan, up 51.7% year-over-year [1][2]. - The growth is attributed to the recovery in powder core sales and sustained high growth in chip inductors. The slight quarter-over-quarter decline in Q3 revenue is considered a normal operational adjustment [2]. - The company is positioned to benefit from high computing power demand, with significant growth potential in the soft magnetic powder core and chip inductor segments [3]. Financial Performance Summary - For the first three quarters of 2024, the company reported a gross margin of 40.9%, with a net profit margin of 23.3% in Q3, reflecting a substantial year-over-year improvement [2]. - The company plans to invest 454 million yuan to expand its chip inductor production capacity, indicating a commitment to enhancing its growth trajectory [3]. - The projected net profits for 2024-2026 are 395 million, 498 million, and 626 million yuan, respectively, with corresponding price-to-earnings ratios of 35x, 28x, and 22x based on the closing price on October 24 [3][4]. Financial Data and Valuation - The company’s revenue is expected to grow significantly, with projections of 1.693 billion yuan in 2024, 2.079 billion yuan in 2025, and 2.590 billion yuan in 2026, reflecting growth rates of 46.14%, 22.77%, and 24.57% respectively [4][9]. - The earnings per share (EPS) are forecasted to be 1.41 yuan in 2024, 1.77 yuan in 2025, and 2.23 yuan in 2026, with a decreasing price-to-earnings ratio over the same period [4][9].