ECT(SZ:300679) KAIYUAN SECURITIES·2024-07-22 02:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [2][14][9]. Core Insights - The company is expected to achieve a significant year-on-year increase in net profit for the first half of 2024, with estimates ranging from 300 to 335 million yuan, reflecting a growth of 139.72% to 167.69% [2]. - The growth is attributed to the recovery in the global consumer electronics industry and the introduction of new clients in the automotive high-frequency and high-speed connector business [2][3]. - The report projects an upward revision of net profit forecasts for 2024, 2025, and 2026 to 620 million, 820 million, and 1.05 billion yuan respectively, with corresponding price-to-earnings ratios of 25.4, 19.3, and 15.1 times [2][3]. Financial Performance Summary - The company reported a net profit of 443 million yuan in 2022, which decreased to 356 million yuan in 2023, but is expected to rebound to 624 million yuan in 2024, representing a year-on-year growth of 75.1% [7]. - Revenue is projected to grow from 2.97 billion yuan in 2022 to 4.03 billion yuan in 2024, reflecting a compound annual growth rate of 28.9% [7]. - The gross margin is expected to improve from 31.7% in 2022 to 33.5% in 2024, indicating enhanced profitability [7]. Business Segment Insights - The automotive connector segment is experiencing rapid growth, with the company entering the supply chains of major domestic automotive manufacturers such as Geely, Great Wall, BYD, and Changan [3]. - The consumer electronics segment is also recovering, driven by increasing demand from terminal manufacturers and improved profitability in the flexible circuit board business [3]. - The company is focusing on expanding its market presence in non-mobile consumer electronics while enhancing its capabilities in high-frequency and high-speed automotive connectors [3].