Poco Holding Co.Ltd(300811) (300811)
Alloy soft magnetic particle core is the core material of inductance, which fully benefits from the development of photovoltaic, energy storage, new energy vehicles and charging piles.
Alloy soft magnetic particle core is mainly used to produce relevant inductive components in the field of power electronics. Thanks to its characteristics of high efficiency, small volume and low loss, we believe that the permeability of alloy soft magnetic particle core is expected to accelerate in many links of new energy.
Photovoltaic: alloy soft magnetic powder core is the core material of series inverter. The magnetic material of boost inductor and AC inverter inductor basically adopts high-performance ferrosilicon powder core material, and this technical scheme has become the mainstream design scheme in the industry. The company indirectly supplies inverter manufacturers through inductance company to participate in the technical scheme design, and the products have won Huawei It is recognized by leading inverter manufacturers such as Sungrow Power Supply Co.Ltd(300274) . At present, photovoltaic products have accounted for more than 50% of the company’s overall revenue.
Energy storage: the energy storage converter has the same technology as the photovoltaic inverter. The magnetic particle core product is used for the power inductance of the energy storage converter. The company is expected to seize the first opportunity in the energy storage market by virtue of cooperation with photovoltaic inverter customers.
New energy vehicles and charging piles: magnetic particle core products are mainly used in power modules such as OBC on-board charger and DC-DC converter in the field of new energy vehicles, as well as charging piles as supporting equipment of new energy vehicles. At present, the company is one of Byd Company Limited(002594) major alloy soft magnetic suppliers, and Byd Company Limited(002594) is also the company’s largest customer in the field of new energy vehicles. The module products made of alloy soft magnetic particle core can withstand higher current. With the promotion of 800V high voltage platform, the demand space for alloy soft magnetic particle core is opened.
Only a few manufacturers have the mass production capacity of alloy soft magnetic particle core, and the company’s scale and profitability are leading in the industry
The process threshold of alloy soft magnetic particle core is high, and the progress of long-term localization is slow. Most of the companies entering the soft magnetic field in China are ferrite rather than alloy soft magnetic core, which has a weak direct competitive relationship with the company. At present, the large-scale companies directly competing with the company mainly include American magnetic, Korea Changxing and dongmukeda.
At present, the market of American magnetic is mainly concentrated in Europe and America, and most iron and nickel products are in Changxing market. The pace of development in recent years is slow. The income scale of American magnetic and Changxing in alloy soft magnetic powder core has been surpassed by the company. Compared with foreign-funded enterprises, the company has the advantage of localization and supporting solutions for customers, and the company’s global market share is expected to accelerate in the future. Compared with local enterprises, the company integrates the production of alloy soft magnetic powder, and the gross profit margin is significantly higher than that of its peers.
Working with Infineon to develop chip inductors, chip inductors are expected to become a new growth point of the company
The chip inductor market is large and has strict requirements for magnetic materials. At present, the loss of NPX products launched by the company is close to that of ferrite, and 70% of the volume space can be saved. The metal chip inductor developed by the company may partially replace the ferrite chip inductor.
Work with Infineon to jointly develop and complete the construction of small batch production line. In June 2021, the company signed the system development partnership agreement with Infineon. The two sides will combine the company’s metal magnetic particle core, chip inductor and other products with Infineon’s semiconductor products for joint development in specific application fields. At present, the company has completed the construction of small batch production line and started to build large-scale production line, which is expected to become a new growth point of the company in the future.
Profit forecast
Downstream new energy has a strong demand for raw materials of high-performance inductors, and the alloy soft magnetic particle core is expected to be in short supply. As a leader in the industry, the company will fully benefit. Regardless of the impact of the issuance of convertible bonds, it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 123 million yuan, 196 million yuan and 280 million yuan respectively, and the corresponding PE will be 86, 54 and 38 times respectively. It will be covered for the first time and given a “recommended” rating.
Risk statement
1) Risk of substantial price reduction of products; 2) The price of upstream raw materials has risen sharply; 3) Downstream demand is lower than expected; 4) Risk of intensified industry competition; 5) Production capacity construction progress is less than expected; 6) The issuance progress of convertible bonds is less than expected; 7) Market systemic risk.
