Core Viewpoint - Longmag Technology (300835) is focusing on expanding its production capacity and enhancing its product offerings in the permanent magnet ferrite market, while also making significant strides in chip inductors to meet growing demand in various applications. Group 1: Permanent Magnet Ferrite Market - The competition in the permanent magnet ferrite market is characterized by multi-level differentiation and regional concentration, with Japan's TDK and Hitachi Metals focusing on high-end markets while China remains the largest producer [2] - Longmag aims to enhance its permanent magnet capacity to 60,000 tons through domestic upgrades and overseas expansion, particularly targeting automotive and variable frequency home appliance applications [2] Group 2: Vietnam Production Base - The Vietnam permanent magnet factory has completed upgrades, increasing its capacity to 12,000 tons, and is experiencing high demand due to supply constraints from rare earth policies [3] - The Vietnam base is expected to be a significant contributor to the company's revenue growth moving forward [3] Group 3: Chip Inductor Development - Chip inductors are positioned to benefit from the increasing demand for computing power, with significant technical barriers in product testing and supply chain management [4] - The company is focusing on product development and customer expansion, with new projects expected to launch next year as market demand grows [4][5] Group 4: Value Contribution of Chip Inductors - Chip inductors currently account for approximately 20% of the value in power modules, with expectations to rise to around 30% as power requirements increase [5] - The company is investing in TLVR inductors, which offer higher performance and profitability compared to traditional inductors, with strong customer demand anticipated [6] Group 5: Financial Performance - Longmag reported a revenue of 591 million yuan for the first half of 2025, a year-on-year increase of 6.36%, with a net profit of 85.25 million yuan, up 31.82% [7] - The company’s second-quarter performance showed a revenue of 335 million yuan, a 10.69% increase year-on-year, and a net profit of 56.78 million yuan, reflecting a 67.53% increase [7]

Group 1: Market Overview and Production Capacity - The competition in the permanent magnet ferrite market is characterized by multi-level differentiation, regional concentration, and technology-driven dynamics. Japan's TDK and Hitachi Metals focus on the high-end market with limited capacity utilization, while China is the largest producer, with concentrated capacities in Anhui and Zhejiang, forming an industrial cluster [1] - The company aims to enhance its permanent magnet capacity to 60,000 tons, focusing on applications in automotive and variable frequency home appliances, while upgrading domestic production capabilities [1] Group 2: Vietnam Base and Performance Outlook - The Vietnam permanent magnet factory has completed technical upgrades and expansions, reaching a capacity of 12,000 tons. Due to rare earth control policies and trade regulations, overseas permanent magnet supply is tight, leading to increased demand from customers for the Vietnam base [2] Group 3: Chip Inductor Development - The chip inductor aligns with the growing demand for AI computing power and represents a high-end level of inductor technology. The product testing phase involves over 20 core parameter tests, with a typical testing cycle exceeding three months [3] - This year marks a pivotal year for customer development and validation for chip inductors, with recent small orders from a well-known international semiconductor power supplier and multiple products in the testing phase [3] Group 4: Value Contribution of Chip Inductors - The average value contribution of chip inductors in AI power modules is approximately 20%. This is expected to rise to around 30% as AI technology advances and higher power chips require better performance inductors [4] Group 5: TLVR Inductor Focus - TLVR inductors are designed for low voltage and high current environments, reducing the need for capacitors and lowering system costs. They are expected to see broader applications in AI and renewable energy sectors [5] - TLVR inductors have a value that is 2-3 times higher than traditional NON-TLVR inductors, leading to greater profit margins, prompting the company to invest more in TLVR development [5] Group 6: Vertical Power Supply Solutions - The company’s high-end molded inductors are used in vertical power supply modules, which offer advantages in power path, space utilization, heat dissipation, and integration compared to traditional planar solutions. Customer feedback indicates lower costs and energy consumption, enhancing acceptance of the company's products [6][7]

Group 1 - The core viewpoint of the article highlights the recent research conducted by the well-known private equity firm Dongfang Gangwan on a listed company, Longci Technology, which is expected to achieve a revenue of 591 million yuan in the first half of 2025, representing a year-on-year growth of 6.36% [1] - The net profit for Longci Technology is projected to be 85.25 million yuan, reflecting a year-on-year increase of 31.82%, driven by the completion of technical upgrades at its overseas permanent magnet factory, reduced losses in its soft magnetic business, and improved cost control leading to higher gross margins [1] - The production capacity at the Vietnam base is 12,000 tons, with product demand exceeding supply, serving as a significant support for the company's performance [1] - The chip inductors are currently in the small batch delivery and testing phase, with a slow ramp-up expected to contribute to revenue next year [1] - The soft magnetic business has shown significant loss reduction, with a goal of achieving self-sufficiency for the entire year [1] - The value contribution of inductors in power modules is currently about 20%, with potential growth to 30% in the future [1] - TLVR inductors are valued at 2-3 times that of traditional products, and the company is focusing on their development [1] - The vertical power supply solution has improved efficiency by over 5%, leading to increased customer acceptance [1] - Compared to competitors like TDK and Murata, the company possesses advantages in material cost-performance and rapid response capabilities [1] Group 2 - Dongfang Gangwan Investment Management Co., Ltd. was founded in 2004 and is one of the first 33 institutions in China to obtain a private fund management license [2] - The firm has consistently adhered to the value investment philosophy of "growing together with great enterprises" and aims to become one of the longest-lasting excellent investment firms in China [2] - Dongfang Gangwan has received high recognition for its investment capabilities, winning multiple prestigious awards in the industry, including the "Golden Bull Award" and "Yinghua Award" [2] - Notably, from 2017 to 2020, the firm won the Golden Bull Award five times over four consecutive years, which is often referred to as the "Oscar" of the Chinese private equity industry [2]

Group 1: Financial Performance - The company achieved a revenue of 591 million CNY in the first half of 2025, representing a year-on-year growth of 6.36% [1] - The net profit attributable to the parent company reached 85.25 million CNY, an increase of 31.82% compared to the same period last year [1] - The improvement in profit is attributed to the completion of overseas production line upgrades, increased shipment volume in soft magnetic business, and enhanced cost control measures [1] Group 2: Production Capacity and Market Outlook - The overseas permanent magnet factory's production capacity has reached 12,000 tons, with significant demand from multiple clients due to supply constraints [1] - The Vietnam base is expected to continue supporting the company's growth due to its supply-demand imbalance [1] - The company is currently in the small-batch delivery and testing phase for its chip inductor business, with expectations for revenue contributions to gradually materialize next year [2] Group 3: Business Development and Strategy - The soft magnetic business aims for self-sufficiency and has shown significant progress in reducing losses through process optimization and market expansion [3] - Chip inductors are projected to have a value contribution of approximately 20% in AI power modules, with expectations to rise to around 30% as AI technology advances [4] - AI chip inductors are a strategic focus for the company, with anticipated project launches next year driven by market demand [5] Group 4: Product Innovation and Competitive Advantage - TLVR inductors, designed for low voltage and high current applications, are gaining traction in AI and new energy sectors, with a higher profit margin compared to traditional inductors [6] - The company has a competitive edge over TDK and Murata due to its proprietary materials and manufacturing processes, which offer better cost-performance ratios [8] - The acceptance of vertical power supply solutions is increasing, with the company's products showing over 5% improvement in power efficiency compared to competitors [7]