POCO(SZ:300811) Great Wall Securities·2024-11-03 12:55Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [16]. Core Views - The company has experienced rapid growth in revenue and net profit, driven by increased sales and the expansion of chip inductor revenue, with a year-on-year revenue growth of 43.63% and a net profit growth of 51.69% in the first three quarters of 2024 [1][2]. - The company is well-positioned to benefit from the growing demand for metal soft magnetic materials in various sectors, including AI, new energy vehicles, and data centers, with significant partnerships established with leading companies [3][7]. - The company has a robust order book for chip inductors, particularly in the AI server market, which is expected to continue its growth trajectory [4][6]. Financial Summary - For 2024, the company is projected to achieve a revenue of 1.65 billion yuan, with a year-on-year growth rate of 42.5%, and a net profit of 390 million yuan, reflecting a growth rate of 52.6% [1][11]. - The gross margin for the first three quarters of 2024 was 40.63%, an increase of 1.05 percentage points year-on-year, while the net profit margin was 23.23%, up by 1.11 percentage points [2]. - The company’s earnings per share (EPS) is expected to grow from 0.91 yuan in 2023 to 1.39 yuan in 2024, with a projected price-to-earnings (P/E) ratio decreasing from 52.0 to 34.0 over the same period [1][11]. Market Position and Growth Potential - The company has successfully introduced its metal soft magnetic powder core products to high-quality domestic and international clients, with a market share gradually increasing to approximately 10% of total revenue in 2023 [3]. - The company is expanding its production capacity, with plans to increase output at its Heyuan production base and the construction of a new powder factory expected to be completed by 2025 [3]. - The global AI server market is projected to grow significantly, with the company’s chip inductor products tailored for AI applications showing strong market potential [6][7].