Dingtong(SH:688668) Shanxi Securities·2026-02-25 02:45Investment Rating - The report maintains a "Buy-B" rating for the company [1] Core Insights - The company is expected to achieve a revenue of 1.59 billion yuan in 2025, representing a year-on-year growth of 54.4%, and a net profit attributable to the parent company of 240 million yuan, which is a 119.6% increase 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, indicating strong market potential [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 Forecast - The company forecasts net profits of 240 million yuan for 2025, 590 million yuan for 2026, and 850 million yuan for 2027, with corresponding EPS of 1.75, 4.26, and 6.10 yuan [7] - Revenue is projected to grow from 1.59 billion yuan in 2025 to 3.06 billion yuan in 2026, and further to 4.44 billion yuan in 2027, reflecting a strong growth trajectory [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] Production Capacity and Projects - The company is set to increase its production capacity for automotive connectors, particularly in the BMS project, with an expected annual output of 374,400 aluminum busbar products, potentially generating an additional revenue of 468 million yuan [7] - The company has established partnerships with major clients in the automotive sector, including BYD and Changan Automobile, to enhance its market position [3][7]