Investment Rating - The report gives an initial investment rating of "Buy" for the company [3][11]. Core Views - The company, Weifeng Electronics, is a leader in the industrial connector sector and is actively expanding into the automotive and new energy markets. Its main products are high-end precision connectors used in industrial automation, new energy vehicles, and photovoltaic inverter systems. The forecasted net profit for 2024-2026 is 131 million, 152 million, and 186 million yuan respectively, with corresponding PE ratios of 33.0, 28.4, and 23.3 times [11]. Summary by Sections 1. Company Overview - Weifeng Electronics has been deeply engaged in the industrial connector market for 20 years and is actively expanding into the automotive and new energy sectors. The company has a stable and concentrated shareholding structure that supports its financial operations [2][11]. 2. Industry Growth - The connector industry is experiencing accelerated domestic substitution, with the global connector market expected to reach 90 billion USD in 2023, making China the largest connector market globally. The domestic market size grew from 14.719 billion USD in 2015 to 24.978 billion USD in 2022, with a CAGR of 7.85% [28][29]. 3. Market Demand - The demand for industrial connectors is driven by the rise of industrial automation in China, with the global industrial connector market size around 10 billion USD in 2021. The automotive sector is also seeing growth in high-frequency and high-speed connectors due to the increasing penetration of intelligent driving technologies, with the domestic market expected to reach 13.62 billion yuan by 2025 [13][71]. 4. Product Layout - The company has a diverse product range, focusing on three main sectors: industrial control, automotive, and new energy. The industrial control connectors have consistently accounted for over 60% of revenue since 2018, while the automotive connectors are positioned for growth due to the increasing demand for electric vehicles [59][90]. 5. Financial Performance - The company's revenue for 2022 was 480 million yuan, with a projected increase to 562 million yuan in 2024, reflecting a year-on-year growth of 15.4%. The gross profit margin is expected to remain high, with a forecasted gross margin of 41.4% in 2024 [15][90]. 6. Competitive Landscape - The company faces competition primarily from international firms in the industrial connector space, while it has a competitive edge in the domestic market due to its focus on high-margin products and a lack of significant domestic competitors in the industrial control segment [90][92].
维峰电子：公司首次覆盖报告：国内工控连接器龙头，积极拓展汽车和新能源赛道