Key takeaway

Sinomag Technology achieved a net profit attributable to shareholders of RMB 168 million in 2025, a year-on-year increase of 51.7%. The high-end ferrite permanent magnet business is expanding steadily, having achieved a production capacity scale of 50,000 tons. The company plans to further expand in Vietnam to reach 60,000 tons, surpassing Japan's TDK to become global number one; the company's high-end Grade 15 products are being shipped in bulk, which can replace rare earth permanent magnets in some applications, opening up incremental space. The AI chip inductor business is the company's second growth curve. AI chip inductors are core components for the tertiary power supply in AI servers. The increase in AI computing power and performance upgrades will drive three key changes: growth in computing chip shipments, increased power per chip, and increased value per inductor. The AI chip inductor market is set to expand rapidly; the company plans a private placement to build new capacity for 180 million high-end chip inductors, achieving mass production of AI chip inductors in 2026, accelerating performance delivery.