ECT(SZ:300679) Changjiang Securities·2025-08-27 13:34Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported a revenue of 2.524 billion yuan for the first half of 2025, representing a year-on-year growth of 17.71%. However, the net profit attributable to shareholders decreased by 21.1% to 243 million yuan, and the net profit after deducting non-recurring gains and losses fell by 19.07% to 239 million yuan [3][10]. - The company is deeply integrated with leading clients in the consumer electronics and automotive connector sectors. It aims to enhance its technology research and market expansion, potentially achieving performance growth driven by both automotive connectors and consumer electronics [10][11]. Summary by Sections Financial Performance - In the first half of 2025, the automotive connector business generated revenue of 811 million yuan, a year-on-year increase of 35.84%, with a gross margin of 37.49%, down 3.29% year-on-year. The RF connector and cable assembly business saw revenue of 467 million yuan, a decrease of 5.78%, with a gross margin of 40.15%, down 4.89% year-on-year. The electromagnetic compatibility components business reported revenue of 448 million yuan, a slight decrease of 0.32%, with a gross margin of 29.14%, down 4.26% year-on-year. The soft board business achieved revenue of 411 million yuan, an increase of 58.11%, with a gross margin of 12.42%, down 5.08% year-on-year. Other businesses generated revenue of 387 million yuan, a year-on-year increase of 14.07%, with a gross margin of 17.89%, down 0.67% year-on-year [10][11]. - The company experienced revenue growth but lower-than-expected net profit due to increased operational costs from capacity expansion, product structure adjustment costs, and price fluctuations leading to a decline in gross margin [10][11]. Market Position and Future Outlook - The company has established a comprehensive R&D system, achieving industry-leading levels in product development and manufacturing. It has entered the supply chains of major global smartphone brands and domestic automotive manufacturers, enhancing its market competitiveness [10][11]. - The company is expected to continue strengthening its technology research and market expansion, with projections for net profit attributable to shareholders of 754 million yuan, 906 million yuan, and 1.1 billion yuan for 2025, 2026, and 2027, respectively [10][11].