POCO(SZ:300811) Tianfeng Securities·2025-04-29 07:45Investment Rating - The report upgrades the investment rating to "Buy" with a target price of 52.2 CNY per share, reflecting a potential upside of over 20% from the current price of 40.22 CNY [7][11]. Core Insights - The company achieved impressive financial results in 2024, with revenue of 1.663 billion CNY, a year-on-year increase of 43.5%, and a net profit of 376 million CNY, up 46.9% year-on-year [1][5]. - The growth in revenue is driven by the strong performance of chip inductors, which saw a remarkable year-on-year increase of 275.8% in 2024 [2][4]. - The company is well-positioned to benefit from the increasing demand in high-performance computing and renewable energy sectors, establishing long-term partnerships with major brands like BYD, Gree, and Huawei [4][11]. Financial Performance - In 2024, the company reported a gross margin of 40.4%, an increase of 1.2 percentage points year-on-year, with a net margin of 22.5%, up 0.4 percentage points year-on-year [3]. - The first quarter of 2025 showed a revenue of 383 million CNY, a year-on-year increase of 14.4%, although it experienced a quarter-on-quarter decline of 12.1% due to seasonal factors [1][3]. - The company’s EBITDA for 2024 is projected at 633.31 million CNY, with a net profit forecast of 375.72 million CNY for the same year [6][14]. Growth Drivers - The company is expanding its production capacity for chip inductors, with a target of 20 million pieces per year, which is expected to alleviate capacity constraints and contribute significantly to revenue growth [4][11]. - The ongoing development of new product lines, including the fifth generation of iron-silicon magnetic powder cores, is anticipated to enhance the company's competitive edge in the market [4][11]. - The establishment of a production base in Thailand is expected to further support the company's growth in international markets [4][11]. Valuation Metrics - The projected price-to-earnings (P/E) ratio for 2025 is 23.11, which is below the industry average of 34x, indicating potential undervaluation [11][12]. - The report suggests a target P/E of 30x for 2025, leading to a market capitalization estimate of 150.6 billion CNY [11][12].