鸿日达：连接器小巨人横向开拓，半导体散热鸿日初升

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [3]. Core Insights - The company, Hongrida, is recognized as a domestic connector small giant with a complete vertical integration of the connector production process, primarily serving the consumer electronics market. It aims to upgrade to high-end products such as automotive high-frequency connectors and mobile BTB connectors [1][3]. - The company is expanding its production lines for automotive connectors and rapidly acquiring customer resources in both automotive and mobile sectors. Additionally, it has ventured into the semiconductor heat sink market, positioning itself to replace leading Taiwanese competitors [1][6]. - The company has experienced a significant revenue growth of 21.34% in 2023, reaching a historical high, and is expected to continue this upward trend in 2024 [22]. Summary by Sections Connectors - The global connector market is expanding, with China's market size reaching $26.5 billion in 2022, accounting for 31.51% of the global market. The company has a comprehensive product framework and is actively expanding into high-end automotive and mobile BTB connectors [4][28]. - The company has been deeply involved in the connector market for over 20 years, adapting to industry changes and expanding its product types to meet diverse electronic industry needs [16][28]. MIM Components - The company has developed its MIM (Metal Injection Molding) business, which has seen rapid growth, achieving a revenue of 92 million yuan in the first half of 2024, accounting for 23.7% of total revenue. This segment benefits from the company's established customer relationships and precision processing technology [5][17]. - The MIM components are primarily used in mobile and wearable electronics, with significant contributions from major clients like Xiaotianzi [5][17]. Semiconductor Heat Sinks - The company is entering the semiconductor heat sink market, which is expected to see substantial growth due to increasing demand from high-performance chips in AI and data centers. The company is positioned as a leader in mainland China's metal heat sink market [6][22]. - The company has made strategic changes to its IPO fundraising projects to focus on high-end semiconductor heat sink production, anticipating significant volume growth in 2024 [6][22]. Financial Performance - The company has shown a strong recovery in profitability, with a 283% year-on-year increase in net profit in the first half of 2024, driven by the recovery in consumer electronics demand and upgrades in key customer products [22][24]. - The company’s revenue structure is diversifying, with connectors and MIM components being the main revenue sources. The MIM segment has maintained over 30% growth since 2018, indicating a robust growth trajectory [25][26].