ECT(SZ:300679) Guotou Securities·2025-12-02 14:02Investment Rating - The investment rating for the company is "Buy-A" with a target price of 62.53 CNY per share, maintaining the rating [5]. Core Views - The company is expected to benefit from the rapid growth of AI and robotics industries, which will open up significant growth opportunities for its high-speed connector products [1]. - The company achieved a revenue of 4.039 billion CNY in Q1-Q3 2025, representing a year-on-year increase of 21.20%, driven by successful integration of automotive connector products into major domestic automotive clients and stable demand in the consumer electronics sector [2]. - Despite revenue growth, the company's net profit for the same period decreased by 18.71% to 373 million CNY due to increased operating costs and expenses associated with business expansion [2]. - The company has a strong customer base in the automotive and consumer electronics sectors, having become a core supplier for major smartphone brands and domestic automotive manufacturers [3]. - The company is also expanding into emerging fields such as servers, data centers, and robotics, with existing collaborations with leading robotics companies [3]. Summary by Sections Revenue and Profitability - The company reported a revenue of 40.39 billion CNY in Q1-Q3 2025, a 21.20% increase year-on-year [2]. - The net profit for the same period was 373 million CNY, down 18.71% year-on-year due to rising costs and expenses [2]. Market Position and Customer Base - The company has established itself as a key supplier for major smartphone brands including Xiaomi, Oppo, and Samsung, as well as for domestic automotive manufacturers like Geely and BYD [3]. - The automotive market, particularly in the context of electric vehicles, is expected to drive further growth for the company [3]. Future Growth Potential - The company is well-positioned to capitalize on the growth of AI servers, with global AI server shipments expected to increase by over 20% annually, reaching a 17% share of the overall server market by 2026 [1]. - The company is actively involved in the robotics sector, with ongoing product development collaborations with leading robotics firms [3]. Financial Projections - Revenue projections for the company are 5.867 billion CNY in 2025, 7.306 billion CNY in 2026, and 8.925 billion CNY in 2027, with net profits expected to reach 681 million CNY, 916 million CNY, and 1.114 billion CNY respectively [10][12].