ECT(SZ:300679) Guolian Securities·2024-07-22 08:00Investment Rating - The report maintains a "Buy" rating for the company [6][16]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 300-335 million yuan in H1 2024, representing a year-on-year increase of 140%-168% [1][4]. - The automotive and consumer electronics sectors are driving strong performance, with significant sales growth from major clients [4][14]. - The company is benefiting from improved operational efficiency and cost control, leading to an increase in gross margin and profitability [4][16]. Financial Performance Summary - Revenue for 2024 is projected to be 4.23 billion yuan, with a growth rate of 35.17% [7]. - The net profit for 2024 is forecasted at 642 million yuan, reflecting an 80.12% increase [7]. - Earnings per share (EPS) is expected to reach 1.52 yuan in 2024, with a compound annual growth rate (CAGR) of 43% from 2024 to 2026 [16]. Market Trends - The penetration rate of L2+ vehicles reached 9.25% from January to May 2024, an increase of 4.43 percentage points year-on-year, indicating a growing demand for advanced driving features [6][16]. - The company’s automotive business is expected to benefit from the rising demand for high-speed connectors as the market for advanced driver-assistance systems expands [15][16]. Client Performance - Major automotive clients such as Geely, Chery, Changan, and Great Wall Motors reported significant sales growth in Q2 2024, with year-on-year increases of 29%, 41%, 6%, and a slight decrease of 5% respectively [14]. - The consumer electronics segment is also performing well, with Huawei's P70 launch boosting sales, and other brands like Xiaomi, Vivo, and Oppo showing positive growth [14].