Core Viewpoint - The company, Shaanxi Huada Technology Co., Ltd., has a strong position in the domestic connector market, particularly in military applications, and is poised for growth due to increasing demand and new market opportunities from its fundraising projects [1][2]. Group 1: Company Background - The company originated from the state-owned No. 853 Factory and has over 50 years of experience in research and production, specializing in RF coaxial connectors, low-frequency connectors, and RF coaxial cable components [1]. - It ranks among the top manufacturers of military connectors in China and is controlled by the Shaanxi Provincial State-owned Assets Supervision and Administration Commission [1]. Group 2: Market Outlook - The overall connector market in China is on an upward trend, with a projected market size of 205.8 billion yuan in 2023, reflecting a 9.1% increase from the previous year, and expected to reach approximately 218.1 billion yuan in 2024 [2]. - The military connector market is anticipated to grow due to increased defense spending and the trend towards domestic substitution, which will likely boost the company's product sales [2]. Group 3: Investment Projects - The company plans to invest 339 million yuan in a satellite interconnection high-reliability connector system project, which is expected to expand its business into satellite communications and phased array antennas [2]. Group 4: Customer Base and Profitability - The company has established a stable and high-quality customer base, including major entities like China Electronics Technology Group, Aerospace Science and Technology Corporation, and Huawei, maintaining long-term cooperative relationships [2]. - The company's products are primarily customized in small batches, which enhances their competitiveness and results in a gross margin that is significantly higher than the industry average [2]. Group 5: Profit Forecast - The company forecasts net profits attributable to shareholders of 63 million yuan, 93 million yuan, and 120 million yuan for the years 2025 to 2027, with corresponding valuations of 161.1, 108.2, and 83.8 times [3].
陕西华达(301517)深度报告：连接器需求稳步增长筑牢基本盘 积极拓展卫星市场