KSHG(SH:605333) GOLDEN SUN SECURITIES·2024-07-10 03:02Investment Rating - The report maintains a "Buy" rating for the company [4][21]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 230-270 million yuan in H1 2024, marking a turnaround from losses in the previous year [2]. - The growth in the electric vehicle market is driving demand for high-voltage connectors, which the company has developed across a range of specifications [3]. - The company has adjusted its profit forecasts for 2024-2026, projecting net profits of 510 million, 710 million, and 840 million yuan respectively, with corresponding P/E ratios of 24, 17, and 14 times [4]. Financial Performance - Revenue is projected to grow significantly, with estimates of 7622 million yuan in 2024, reflecting a year-on-year growth rate of 90.4% [5]. - The net profit for 2024 is expected to be 508 million yuan, a substantial increase of 839.7% year-on-year [5]. - The company’s earnings per share (EPS) is forecasted to rise to 1.16 yuan in 2024, with further increases in subsequent years [5]. Market Position and Strategy - The company is focusing on high-voltage connector products, which are becoming a new growth point due to the increasing market share of electric vehicles [3]. - The company has established production capabilities for a full range of high-voltage connectors and has begun mass production for major automotive clients [3]. - The company is also expanding its product offerings in lightweight products and integrated high-frequency communication solutions, which are currently in testing phases [19]. Customer and Market Dynamics - The company is benefiting from increased orders from electric vehicle manufacturers, with significant sales growth reported in the domestic market [18]. - The report highlights the company's successful acquisition of new projects with major automotive brands, indicating a strong pipeline for future growth [19].