Summary of the Conference Call for 博客新材 (Platinum Materials) Industry Overview - 博客新材 holds a leading position in the soft magnetic materials sector, with a domestic market share of nearly 40%, and together with 东睦股份, they account for 60%-70% of the market [2][7] - The company maintains stable gross and net profit margins, indicating strong competitive advantages and profitability [2] Key Business Insights - The company operates two main business segments: powder core business and chip inductor business [3] - The integrated layout is crucial for powder core enterprises, allowing 博客新材 to better understand powder preparation processes, quickly respond to downstream demands, and effectively reduce costs [2][8] - 博客新材's flexible production capacity is a significant advantage, with sales expected to reach approximately 38,000 tons in 2024 and a target of 48,000 to 50,000 tons in 2025, maintaining a growth rate of 15% to 20% [2][10] Chip Inductor Business - The chip inductor segment has shown rapid revenue growth over the past three years, primarily supplying clients like NVIDIA and AMD, and is expanding into new applications such as DDR6 memory modules [5][14] - The copper-iron co-fired inductors have high power, small size, and safety advantages, with gross margins reaching 50% and net margins around 30%, significantly enhancing the company's overall profitability [12] Market Position and Future Outlook - The global market demand for soft magnetic materials is estimated at around 250,000 tons, with 博客新材 and 东睦股份 dominating the domestic market [7] - The company is expected to maintain stable revenue and profit growth in the coming years, with projected revenues of 2.2 billion, 3.2 billion, and 3.7 billion yuan, and profits of 470 million, 590 million, and 700 million yuan, reflecting a growth rate of approximately 25% [16] - The current stock price is considered undervalued, warranting attention for its Q2 performance and the marginal changes post chip inductor production ramp-up [16] Additional Insights - The powder core business primarily serves the renewable energy sector, while the chip inductor business is expanding into AI graphics cards and terminal devices [4] - The integrated layout not only enhances cost efficiency but also strengthens the company's ability to develop new products, positioning it favorably in the competitive landscape [8] - 博客新材's future prospects are promising, with potential applications in AI servers, mobile devices, PCs, and storage modules, supported by capacity expansion and employee incentive programs [15]

Core Insights - The company achieved a revenue of 1.663 billion yuan in 2024, representing a year-on-year increase of 43.54%, and a net profit of 376 million yuan, up 46.90% year-on-year [1] - The company plans to distribute a cash dividend of 2.00 yuan per 10 shares, resulting in a dividend yield of 0.47% [1] Financial Performance - In Q1 2025, the company reported a revenue of 383 million yuan, a year-on-year increase of 14.40% and a quarter-on-quarter increase of 12.11% [1] - The net profit for Q1 2025 was 73.76 million yuan, reflecting a year-on-year increase of 3.13% but a quarter-on-quarter decrease of 17.34% [1] - The company's gross margin and net margin for 2024 were 40.70% and 22.48%, respectively, both showing year-on-year improvements [2] - For Q1 2025, the gross margin and net margin were 37.68% and 19.16%, respectively, indicating a quarter-on-quarter decline primarily due to changes in product structure [2] Business Growth - The company experienced high-quality growth in its three main business segments: magnetic powder cores, chip inductors, and soft magnetic powder, driven by strong demand in AI, photovoltaics, and new energy vehicles [2] - Revenue from metal soft magnetic powder cores reached 1.234 billion yuan, a year-on-year increase of 20.2%, solidifying the company's market leadership [2] - Chip inductors generated sales of 386 million yuan, a significant year-on-year increase of 275.76%, indicating strong growth potential [2] - Revenue from metal soft magnetic powder was 399.4 million yuan, up 47.31% year-on-year, driven by demand from emerging applications [2] Project Development - The company announced plans to invest up to 100 million yuan to establish a high-end metal soft magnetic materials and magnetic components production base in Thailand [3] - A new project for high-end integrated inductors is planned with an investment of 454 million yuan, aimed at addressing capacity bottlenecks [3] - The company is also expanding its production capacity with a new modern powder production base expected to reach an annual capacity of 6,000 tons by 2025 [3] Investment Outlook - The company's core business in magnetic powder cores is positioned to benefit from the new energy sector and is extending its reach into the upstream chip inductor segment [4] - Revenue projections for 2025-2027 are 2.08 billion yuan, 2.54 billion yuan, and 3.05 billion yuan, with expected year-on-year growth rates of 25.1%, 21.9%, and 20.5% respectively [4] - Net profit forecasts for the same period are 451 million yuan, 558 million yuan, and 684 million yuan, with growth rates of 20.1%, 23.7%, and 22.6% respectively [4]