ECT(SZ:300679) GF SECURITIES·2025-04-11 08:33Investment Rating - The report assigns a "Buy" rating to the company with a current price of 51.51 CNY and a fair value of 70.84 CNY [4]. Core Insights - The company is positioned as a leading connector manufacturer in the automotive and consumer electronics sectors, benefiting from the growing trend of automotive intelligence and the expansion of high-frequency and high-speed connectors [8][14]. - The automotive connector market is expected to grow rapidly as intelligent driving configurations penetrate mid- to low-end models, enhancing overall market demand [41][48]. - The company has established strong partnerships with major domestic automotive manufacturers, ensuring a stable supply chain and robust order backlog, which supports its growth trajectory [8][28]. Financial Summary - The company's revenue is projected to grow from 31.29 billion CNY in 2023 to 76.06 billion CNY by 2026, reflecting a compound annual growth rate (CAGR) of approximately 24.8% [2]. - The net profit attributable to the parent company is expected to increase from 3.56 billion CNY in 2023 to 10.91 billion CNY in 2026, indicating strong profitability growth [2]. - The company's earnings per share (EPS) is forecasted to rise from 0.84 CNY in 2023 to 2.57 CNY in 2026, showcasing significant earnings potential [2]. Market Trends - The global connector market is projected to grow at a compound annual growth rate (CAGR) of 5.8% over the next four to five years, driven by increasing demand across various sectors, including automotive and consumer electronics [41][42]. - The automotive connector market is particularly promising, with the global market size estimated at approximately 14.15 billion USD in 2020, expected to expand further due to the rise of electric vehicles and smart driving technologies [47][48]. Product and Capacity Expansion - The company is continuously expanding its product offerings in high-frequency and high-speed connectors, which are essential for advanced automotive applications, including autonomous driving systems [8][41]. - The company has made significant investments in capacity expansion, enhancing its delivery capabilities and solidifying its position within the supply chains of leading automotive manufacturers [8][28].