ECT(SZ:300679) Huachuang Securities·2024-07-19 05:01Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 56.74 CNY, based on a projected 36 times PE for 2024 [2][24][26]. Core Insights - The consumer electronics industry is recovering, leading to stable revenue growth for the company's main business. The company has a strong presence in the consumer electronics connector market, serving major smartphone brands such as Xiaomi, OPPO, and Huawei. Revenue from consumer electronics products is expected to see significant year-on-year growth as the industry recovers [2][24]. - The company is strategically positioned in the automotive high-frequency and high-speed connector market, which is expected to drive long-term growth due to increasing demand from electric and smart vehicles. The company has optimized its customer structure in the automotive sector, with core customer revenue showing rapid growth [2][24]. - Automation improvements and cost optimization have led to a significant increase in the gross profit margin of the company's main products. The company is expected to see a substantial increase in net profit attributable to shareholders due to rising revenue and improved margins [2][24]. Financial Summary - The company is projected to achieve a net profit attributable to shareholders of 666 million CNY in 2024, with a year-on-year growth rate of 86.9%. Revenue is expected to reach 4.39 billion CNY, reflecting a growth rate of 40.4% [6][25]. - Key financial metrics for 2024 include an earnings per share (EPS) of 1.58 CNY and a price-to-earnings (P/E) ratio of 26 [6][25]. - The company's total assets are projected to grow from 6.29 billion CNY in 2023 to 7.11 billion CNY in 2024, indicating a strong growth trajectory [6][25].