Investment Rating - The report assigns a "Buy" rating for the company [13]. Core Views - The company leverages its "3+3" strategy, balancing external acquisitions and organic growth, to rapidly enter high-growth sectors, potentially establishing three growth engines: high-voltage connectors for electric vehicles, AI optical modules, and acoustic components for consumer electronics [4][11]. - The recovery of core business, combined with the growth in AI, new energy, and consumer electronics, along with a global production layout to reduce costs, is expected to continuously release profit elasticity [4][11]. Summary by Sections Company Overview - The company is a leader in connection solutions, focusing on the "3+3" strategy, which emphasizes three key industries: EVs, 5G AIoT, and audio, while promoting three core technology transformations: copper to optics, wired to wireless, and components to modules [7][21]. Electric Vehicles - The company accelerates its electric vehicle electrification layout through external acquisitions, aiming to establish product lines for high-voltage connectors, battery management systems, and charging stations. The acquisition of the German Prettl SWH Group in 2022 and Auto-Kabel Group in 2024 enhances its capabilities in this sector [8][58]. Consumer Electronics - Backed by the Foxconn Group, the company expands its consumer electronics footprint through both organic growth and acquisitions, including the purchase of Belkin in 2018, which provided global channels and facilitated a transition from OEM to OBM [9][81]. Infrastructure and Networking - The company is advancing its optical module and CPO technology through strategic acquisitions, including a 70% stake in Huayun Optoelectronics for RMB 220 million, with plans to accelerate product development in high-speed optical modules [10][87]. Financial Performance - The company expects revenue growth from 2025 to 2027, with projected revenues of 5.454 billion, and 177 million, 240 million respectively [11]. The revenue for 2024 is anticipated to be 60.1 billion in 2017 to $84.1 billion in 2022, reflecting a compound annual growth rate of 6.95% [67]. The company benefits from its affiliation with Foxconn, which holds a significant market share in the EMS sector [72]. Future Outlook - The company is well-positioned to capitalize on the AI-driven transformation in consumer electronics, with expectations for increased demand for AI-enabled devices [74]. The anticipated growth in AI smartphones and PCs is expected to drive further demand for connectors [79].
FIT HON TENG（06088）：首次覆盖报告：铜光交响，“3+3”并进