\u3000\u3000 Poco Holding Co.Ltd(300811) (300811)
Event overview
The company released the annual performance forecast for 2021. The company expects to realize the net profit attributable to the shareholders of the parent company of RMB 115 million-125 million. The net profit attributable to the parent company after deducting non-profit is 109 million yuan – 119 million yuan.
The performance is in line with expectations, and the price of raw materials is a short-term interference
According to the announcement of the company, the net profit attributable to the shareholders of the parent company is expected to be 115 million yuan – 125 million yuan, with a year-on-year increase of 7.95% – 17.34%; The net profit attributable to the parent company after deduction was 109 million yuan to 119 million yuan, with a year-on-year increase of 11.06% – 21.21%, which was basically in line with our previous expectations. Benefiting from the upward trend in industries such as photovoltaic and energy storage, new energy vehicles and charging piles, the company has strong demand for products, with a record revenue of 520 million yuan in the first three quarters. However, due to the rapid rise in the price of upstream raw materials (iron and silicon, etc.) of the company in 2021, and most products are customized development, the product cycle is long and the price transmission is slow, resulting in a year-on-year decline in gross profit margin. In addition, the company launched a restricted stock incentive plan, and the amortization expense of share based payment during the reporting period was about 12.69 million yuan. The above two factors mainly affect the company’s profits.
With the evolution of high-frequency downstream applications, the market of soft magnetic materials continues to expand
All links of photovoltaic power generation (power generation, transmission and distribution, power storage, etc.) require high-efficiency and high-power density electric energy conversion; At the same time, the popularity of new energy vehicles and the laying of large-scale charging piles make fast and high-power charging a new trend; The rapid development of information industries such as big data and cloud computing has brought about the continuous growth of high-power electrical equipment such as ups and high-performance server power supply; The fast charging technology of smart terminals and mobile phones also greatly increases the output power of the power adapter. The high-frequency development of downstream applications requires that the power supply equipment must have the characteristics of high performance, high power and large capacity. At the same time, with the further promotion of SiC / GaN application, the switching speed of electronic products will evolve towards higher frequency. Alloy soft magnetic particle core combines the advantages of traditional metal soft magnetic and ferrite soft magnetic. It has both high saturation magnetic induction intensity and large resistivity. It meets the needs of the development of electronic products with high frequency, low loss and high magnetic saturation density. It is the preferred object of high frequency and high power inductive components at present. In the future, with the rise of new energy fields such as new energy vehicles, photovoltaic and wind power, the market of soft magnetic materials will continue to expand, and the demand for metal soft magnetic particle cores will increase rapidly.
Explore the chip inductor market and build the second growth curve of the company
The research and development of Copper Iron Co firing integrated chip inductor of the company is smooth. At present, the pilot test of chip inductor products has been completed and is in the stage of sample delivery. Take NVIDIA GPU as an example, its GPU module needs about 8-16 chip inductors. According to Zhiyan consulting data, China’s GPU chip board market will reach 37 billion yuan in 2024. In the future, with the rise of metauniverse, automatic driving and artificial intelligence applications, the use of GPU will continue to increase. As a potential GPU board and card supplier, the company will continue to benefit in the future. The chip inductance is expected to become a new growth point of the company in the future.
Investment advice
We maintain the previous profit forecast. From 2021 to 2023, the company is expected to achieve operating revenue of 711 million yuan, 1002 million yuan and 1359 million yuan respectively, and net profit attributable to the parent company of 121 million yuan, 174 million yuan and 272 million yuan respectively, corresponding to EPS of 117 million yuan, 168 million yuan and 262 million yuan respectively, corresponding to the closing price of 79.65 yuan on January 28, 2022, and PE of 68, 47 and 30 yuan respectively. Considering that the company is a leading enterprise of alloy soft magnetic particle core, and the downstream scenery is high and uncertain, the “buy” rating is maintained.
Risk tips
The installed capacity of photovoltaic is less than expected; The output of new energy vehicles is lower than expected; The increase in the price of upstream raw materials affects the company’s profits; The rise of electricity price affects the company’s profits; Repeated epidemics and power rationing affect the commencement of construction.
