ECT(SZ:300679) Tianfeng Securities·2024-02-04 16:00Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [3][13]. Core Views - The company has consistently paid dividends since its listing, with a cash dividend ratio exceeding 40% of net profit attributable to shareholders for the past three years. It has also executed three share buyback plans since 2019 and aims to enhance shareholder returns sustainably [2]. - The company is expected to benefit from the recovery in the consumer electronics sector, particularly with Huawei's return and the overall industry improvement. The mobile phone business is projected to see a quarter-on-quarter increase in Q4 2023, while the automotive sector is anticipated to grow rapidly due to the introduction of new clients and the popularity of advanced driver-assistance systems [2][8]. - The company has launched a "Quality Return Dual Improvement" action plan to enhance operational management and core competitiveness, aiming for long-term growth and investor returns [7][22]. Financial Data Summary - Revenue is projected to grow from 3,156.66 million yuan in 2023 to 6,451.35 million yuan in 2025, with a growth rate of 48% in 2024 and 38.09% in 2025 [6][8]. - Net profit attributable to the parent company is expected to increase from 385.86 million yuan in 2023 to 857.20 million yuan in 2025, reflecting a growth rate of 56.41% in 2024 and 42.04% in 2025 [6][8]. - Earnings per share (EPS) is forecasted to rise from 0.91 yuan in 2023 to 2.03 yuan in 2025 [6][8]. Market Position and Outlook - The company is well-positioned to benefit from the recovery in the Android smartphone market and the rapid advancement of automotive intelligence, particularly with the competitive pricing in the automotive sector [8]. - The company has a comprehensive product line for automotive connectors and is gradually onboarding major domestic manufacturers, which is expected to drive significant growth in this segment [2][8].