Dingtong(SH:688668) Shanxi Securities·2026-02-25 01:59Investment Rating - The report maintains a "Buy-B" rating for the company, indicating an expected price increase of over 15% relative to the benchmark index [1]. Core Insights - The company forecasts a revenue of 1.59 billion yuan for 2025, representing a year-on-year growth of 54.4%, and a net profit attributable to shareholders of 240 million yuan, up 119.6% year-on-year [1]. - The demand for communication connectors is robust, driven by AI, with significant growth in high-speed communication products, particularly the 112G products [1][2]. - The global market for Ethernet optical modules above 100G is projected to grow from 16.5 billion USD in 2025 to 26 billion USD in 2026, benefiting the company as it partners with major manufacturers [2]. - The company is expanding its production capacity significantly, with plans to add 12 million communication connectors and 20 million precision structural components annually [2][3]. - The company has entered mass production of liquid cooling optical modules, with annual production capacity expected to reach 200,000 to 300,000 sets [3]. Financial Performance and Projections - The company expects net profits of 240 million yuan in 2025, 590 million yuan in 2026, and 850 million yuan in 2027, with corresponding EPS of 1.75, 4.26, and 6.10 yuan [7]. - Revenue projections for 2025, 2026, and 2027 are 1.59 billion yuan, 3.06 billion yuan, and 4.44 billion yuan, respectively, with year-on-year growth rates of 54.3%, 91.9%, and 45.5% [8]. - The gross margin is expected to improve from 30% in 2025 to 33.3% in 2026, indicating enhanced profitability [8]. Market Data - As of February 24, 2026, the closing price of the stock is 144.36 yuan, with a total market capitalization of 20.105 billion yuan [5]. - The company has a total share capital of 139 million shares, with a circulating market value of 20.105 billion yuan [5].