Investment Rating - The report assigns an "Accumulate-A" rating to the company, indicating a positive outlook for future growth and performance [78]. Core Insights - The company has shown significant recovery in performance in 2023, with revenue and net profit growth continuing to improve. For the first three quarters of 2023, revenue reached 897 million yuan, a year-on-year increase of 15.5%, and net profit attributable to shareholders was 107 million yuan, up 31.5% year-on-year. The company expects to achieve full-year revenue of 1.2 to 1.4 billion yuan, representing a year-on-year growth of 15.0% to 34.1% [38][101]. - The company is expanding its business team and deepening its sales network while actively exploring new fields such as automotive and renewable energy, which is expected to open new growth avenues while consolidating its core business [38][101]. Summary by Sections Company Overview - The company primarily operates in the connector industry, focusing on terminal and harness products, with approximately 50% revenue contribution from each segment. The household appliance sector accounts for nearly 95% of the company's revenue, while the automotive sector currently contributes around 2-2.5% [20][30]. Financial Performance - The gross margin for terminals is higher than that for harnesses, with household appliance connectors achieving a gross margin of nearly 25% in 2022, while automotive connectors had a gross margin of less than 10%. The stable competitive landscape in the household appliance sector contrasts with the more volatile automotive sector, which is still developing for the company [26][38]. Market Position - The company has established strong relationships with major clients in the household appliance sector, including Midea, Haier, and Gree. In the automotive sector, clients include BYD and other new energy vehicle manufacturers. The company is also involved with clients in the photovoltaic and energy storage sectors [30][38]. Industry Context - The connector industry is characterized by a significant market size in China, with international competitors holding substantial market shares. The company faces competition from major international manufacturers such as Tyco Electronics and JST, particularly in the household appliance sector [66][46]. Growth Projections - The company anticipates continued growth in both household and automotive connector segments, with projected revenue growth rates of 20.8%, 23.3%, and 21.3% for household connectors from 2023 to 2025. For automotive connectors, expected revenue growth rates are 74.9%, 78.6%, and 75.7% over the same period [101][105].
家电连接器迎国产替代，进军汽车打造二次增长曲线