ECT(300679) 国投证券·2024-10-27 12:23Investment Rating - The report maintains a "Buy-A" investment rating for the company with a target price of 52.15 CNY, which corresponds to a dynamic P/E ratio of 35.00x for 2024 [4][5]. Core Insights - The company reported a revenue of 3.333 billion CNY for the first three quarters of 2024, representing a year-on-year growth of 51.16%. The net profit attributable to shareholders reached 459 million CNY, up 85.36% year-on-year [1]. - In Q3 2024 alone, the company achieved a revenue of 1.189 billion CNY, a 41.50% increase year-on-year and a 7.66% increase quarter-on-quarter. The net profit for the same quarter was 151 million CNY, reflecting a year-on-year growth of 23.53% [1]. - The growth in the automotive connector business is attributed to the recovery of gross margins and rapid revenue growth, with a gross margin of 33.60% in Q3 2024, an increase of 1.12 percentage points from the previous quarter [1]. Summary by Sections Automotive Business - The penetration rate of smart connected vehicles has significantly increased, with L2 level new car penetration at 55.7% in the first half of the year. The development of L3 and above smart connected vehicles is expected to drive growth in the automotive high-speed connectors and related electronic components [2]. - The company's automotive electronic connector products include RF Fakra connectors, HD camera connectors, high-speed Ethernet connectors, and vehicle USB connectors, which have been successfully integrated into the supply chains of major domestic automakers such as Geely, Great Wall, BYD, Changan, Chery, and Li Auto [2]. Consumer Electronics - The smartphone market is showing signs of recovery, with global smartphone shipments increasing by 7.8%, 9.0%, and 4.0% in Q1 to Q3 2024, respectively. The company's consumer electronics products include micro electrical connectors and RF BTB products, which are critical components in Sub-6G frequency smart devices [3]. - The global BTB market is valued at approximately 12.2 billion USD in 2023, with a projected CAGR of 5.45% from 2023 to 2029. The company's BTB products are gaining market penetration, particularly among Android smartphone manufacturers [3]. Financial Projections - Revenue growth rates for the company are projected at 40.9%, 23.5%, and 22.7% for 2024, 2025, and 2026, respectively. Net profit growth rates are expected to be 77.3%, 31.5%, and 28.2% for the same periods [4]. - The company's financial forecasts indicate a steady increase in revenue and net profit, with net profit expected to reach 631.5 million CNY in 2024, 830.5 million CNY in 2025, and 1.064 billion CNY in 2026 [7].