ECT(300679) 东吴证券·2024-07-19 07:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative price increase of over 15% in the next six months [8][26]. Core Insights - The company's performance in the second quarter slightly exceeded market expectations, with a projected net profit attributable to shareholders of 300-340 million yuan for the first half of 2024, representing a year-on-year increase of 140%-168% [1]. - The growth is attributed to the optimization of product structure, particularly the increase in high-margin automotive connectors and the recovery in demand for consumer electronics [1]. - The company is expected to maintain a high growth trend due to the recovery in consumer electronics demand, new product introductions, and the ramp-up of high-end autonomous driving models [1]. Financial Performance Summary - The company's operating cash flow is projected to increase significantly from 323 million yuan in 2023 to 978 million yuan in 2024 [6]. - The net profit forecast for 2024 is 701.52 million yuan, with a year-on-year growth of 96.97% [10]. - The price-to-earnings (P/E) ratio is expected to decrease from 43.18 in 2023 to 21.92 in 2024, indicating improved valuation [10][26]. Business Segment Insights - The consumer electronics segment is benefiting from the rise of Huawei and industry recovery, with RF connectors expected to contribute significantly to revenue growth [11]. - The automotive business is positioned for high growth, driven by the increasing penetration of high-end autonomous driving models and the expansion of overseas customer bases [18].