Core Viewpoint - The company is a global leader in metal soft magnetic powder cores, establishing an integrated layout for soft magnetic materials, focusing on the metal soft magnetic powder core industry chain, and expanding applications in high-growth sectors such as photovoltaic energy storage, new energy vehicles, and AI computing power [3][4][19]. Group 1: Metal Soft Magnetic Powder Cores - The demand for metal soft magnetic powder cores is continuously improving, solidifying the company's fundamental business [4][17]. - The company is expected to produce 38,000 tons of soft magnetic powder cores in 2024, representing a year-on-year growth of 17.7% [4][17]. - The company has established a comprehensive system of metal soft magnetic powder cores covering frequency applications from 5kHz to 10MHz, evolving from "Iron Silicon Generation 1" to "Iron Silicon Generation 5" [4][17]. Group 2: Metal Soft Magnetic Powders - The company has sufficient technical reserves in metal soft magnetic powders, with self-developed iron-silicon-chromium powder accelerating the process of import substitution [5][18]. - A modern powder production base is set to be established in 2024, with an expected capacity of 6,000 tons per year, aiding the company in further exploring high-end application markets [5][18]. Group 3: Chip Inductors - The demand for chip inductors is expected to grow rapidly due to AI servers, with the company’s products entering the supply chain of leading global GPU manufacturers, breaking the long-standing monopoly of foreign companies in this field [5][18]. - The company has developed industry-leading chip inductors using a unique high-pressure forming and copper-iron co-firing process, which is anticipated to drive significant growth in demand as AI chip computing power increases [5][18]. Group 4: Financial Performance - In the first three quarters of 2025, the company achieved revenue of 1.301 billion yuan, a year-on-year increase of 6.03%, and a net profit attributable to shareholders of 294 million yuan, up 2.48% year-on-year [3][19].

Core Viewpoint - The global market for amorphous and nanocrystalline soft magnetic materials is projected to reach $1.53 billion by 2031, with a compound annual growth rate (CAGR) of 8.9% in the coming years [2][3]. Market Overview - Amorphous soft magnetic materials are characterized by their disordered atomic structure, leading to low coercivity, high magnetic permeability, and low iron loss, making them suitable for applications in power electronic transformers, inductors, motors, and energy-saving devices [1]. - Nanocrystalline soft magnetic materials are produced through heat treatment of amorphous alloys, resulting in a composite structure that combines the benefits of both amorphous and crystalline materials, offering lower magnetic losses and superior frequency characteristics [1]. Market Size and Growth - The amorphous soft magnetic materials segment currently dominates the market, accounting for approximately 52.8% of the total market share, with an estimated market size of around $420 million in 2024 [11]. - The demand for high-performance, low-loss magnetic materials is increasing due to the rapid development of renewable energy generation, electric vehicles, charging infrastructure, and smart grids [11]. Key Drivers - The shift towards more efficient soft magnetic materials is driven by stricter global energy-saving standards and the trend towards green manufacturing, which encourages manufacturers of transformers, inductors, and motors to adopt higher efficiency materials [11]. - Technological advancements, such as precision alloy melting, rapid quenching of strips, and improvements in heat treatment processes, have significantly enhanced product performance and consistency while reducing production costs [11]. Major Players - The leading manufacturers in the global market for amorphous and nanocrystalline soft magnetic materials include Bomatec, Qingdao Yunlu, AnTai Technology, Jiangsu Guoneng, and VACUUMSCHMELZE, with the top four companies holding approximately 82.0% of the market share in 2024 [8].

Group 1 - The company is positioned in the folding screen market, with future single-unit ASP expected to continue rising, and has successfully expanded into new revenue streams such as AI glasses, achieving a revenue increase to 460 million yuan, with institutions projecting a 40% upside in stock price [1] - The ASIC power consumption issue remains unresolved, making metal soft magnetic powder cores a necessary option, while the DDR6 upgrade adds incremental growth; this domestic soft magnetic materials leader is positioned in the AI computing power market, aiming for a production capacity of 300 million pieces by 2026 [1]

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential upside of over 15% relative to the benchmark index [4][6]. Core Insights - The company reported a revenue of 861 million yuan for H1 2025, representing a year-on-year increase of 8.11%, with a net profit attributable to shareholders of 191 million yuan, up 3.28% year-on-year [1]. - The company is positioned as a leader in the soft magnetic core industry, benefiting from high demand in downstream sectors such as new energy vehicles, photovoltaics, and AI [4]. - The chip inductor business is entering a rapid growth phase, with significant potential for expansion as production capacity is set to be released soon [4]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 861 million yuan, with a net profit of 191 million yuan, and a non-recurring net profit of 188 million yuan, showing growth rates of 8.11%, 3.28%, and 4.67% respectively [1]. - For Q2 2025, revenue reached 477 million yuan, a year-on-year increase of 3.54% and a quarter-on-quarter increase of 24.54% [1]. Business Segments - Magnetic powder cores generated revenue of 657 million yuan in H1 2025, up 11.97% year-on-year, driven by growth in sectors like AI servers and new energy vehicles [2]. - Chip inductors saw a revenue decline to approximately 176 million yuan, down 9.71% year-on-year, primarily due to a transition period for module customers [2]. - The magnetic powder segment reported revenue of 26.38 million yuan, a significant increase of 90.35% year-on-year, attributed to strong demand in emerging applications [2]. Profitability and Margins - The company's overall gross margin for H1 2025 was 39.77%, a slight decrease of 0.71 percentage points year-on-year, but improved to 41.44% in Q2 2025, reflecting a recovery in production capacity and stable shipment structure [3]. Growth Prospects - The company is actively expanding its production capacity through private placement projects, indicating strong growth potential [4]. - Forecasts suggest that the company will achieve net profits of 505 million yuan, 648 million yuan, and 824 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 42, 32, and 26 [5][4].

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 metal soft magnetic powder core is a high-performance soft magnetic material with significant market potential, particularly in the context of the new energy industry, including applications in photovoltaic power generation, electric vehicles, and data centers [1][19]. Industry Overview - Soft magnetic materials are characterized by low coercivity and high permeability, making them suitable for various energy conversion devices. They can be categorized into metal soft magnetic materials, ferrite soft magnetic materials, and other types [3][6]. - The demand for metal soft magnetic powder cores in China was 82,000 tons in 2019, with a market size of 2.72 billion yuan. This is expected to grow to 201,000 tons and approximately 7.52 billion yuan by 2025 [1][19]. Market Dynamics - The global soft magnetic materials market is projected to grow from $51.4 billion in 2019 to $79.4 billion in 2024, with a compound annual growth rate (CAGR) of 9.1% [14]. - The Asia-Pacific region holds the largest market share for soft magnetic materials, accounting for over 50%, followed by North America at around 24% [13]. Key Applications - Metal soft magnetic powder cores are crucial in electric vehicles, where they are used in drive motors, onboard chargers, and DC/DC converters, enhancing efficiency and power density [10][17]. - The increasing production of new energy vehicles in China, which is expected to rise from 340,500 units in 2015 to 12.89 million units by 2024, is driving demand for soft magnetic materials [10]. Industry Structure - The soft magnetic materials industry has a clear supply chain, with upstream raw materials sourced from the steel and chemical industries, midstream production of soft magnetic materials, and downstream applications in power, communication, and consumer electronics [6][9]. - Major companies in the Chinese soft magnetic materials sector include Hengdian Group Dong Magnetic, Tiantong Holdings, and Zhongke Magnetic, among others [24][26]. Future Trends - The industry is moving towards high-performance and high-value-added products, driven by rapid advancements in new energy, electric vehicles, and 5G communication technologies [30]. - The push for green and low-carbon technologies is leading to an increase in the use of high-performance silicon steel and low-loss amorphous alloys in various applications [31]. - Domestic companies are accelerating the localization of key soft magnetic materials, reducing reliance on imports and enhancing the competitiveness of the industry [32].