POCO(SZ:300811) Orient Securities·2024-04-25 01:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 67.68 CNY, based on a 36x PE valuation for 2024 [2][21]. Core Insights - The company achieved a revenue of 1.16 billion CNY in 2023, representing an 8.7% year-on-year growth, and a net profit of 256 million CNY, which is a 32.5% increase year-on-year [3][21]. - The company is focusing on the continuous upgrade of its metal soft magnetic powder core products, which has led to a positive market response and an increasing market share [3][21]. - The chip inductor business has become a significant growth driver, with strong sales growth expected to continue into 2024 due to partnerships with leading semiconductor companies [3][21]. Financial Performance - The company's gross margin for 2023 was 39.6%, up by 2.0 percentage points year-on-year, while the net margin was 22.1%, an increase of 3.9 percentage points year-on-year [3][21]. - Forecasted net profits for 2024, 2025, and 2026 are 375 million CNY, 460 million CNY, and 554 million CNY, respectively, with corresponding growth rates of 46.5%, 22.8%, and 20.4% [4][21]. - The company’s earnings per share are projected to be 1.88 CNY in 2024, 2.31 CNY in 2025, and 2.78 CNY in 2026 [21][31]. Market Position and Growth Drivers - The introduction of new product lines, such as the iron-silicon series and iron-nickel series magnetic powder cores, is expected to enhance the company's competitive edge in the market [3][21]. - The company is also making significant advancements in the development of its fifth-generation iron-silicon magnetic powder core, which has shown a 50% reduction in loss characteristics compared to the fourth generation [3][21]. - The chip inductor segment is anticipated to maintain high growth rates, driven by increasing demand from global leading GPU manufacturers [3][21].