Dingtong(SH:688668) Minsheng Securities·2024-04-22 05:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for future growth [24]. Core Insights - The company faced significant operational pressure in 2023, with a notable decline in revenue and profit due to weak global macroeconomic conditions and a sluggish communication market. However, signs of recovery began in Q3 2023, with a marked improvement in demand for communication connector products [1][17]. - The company is actively expanding its automotive business, targeting leading players in the new energy vehicle sector, which is expected to provide stable business sources and growth potential [13]. - The company is developing new products in response to the rapid advancement of AI technology, which is expected to invigorate its communication business [1]. Financial Performance Summary - In 2023, the company achieved a revenue of 683 million yuan, a year-on-year decrease of 18.65%, and a net profit attributable to shareholders of 67 million yuan, down 60.48% [17]. - For 2024, the company is projected to recover with revenues of 1.039 billion yuan and a net profit of 102 million yuan, representing growth rates of 52.2% and 53.3%, respectively [2][24]. - The earnings per share (EPS) is expected to increase from 0.67 yuan in 2023 to 1.03 yuan in 2024, with a corresponding price-to-earnings (PE) ratio decreasing from 70 to 46 [2][24]. Revenue and Profit Forecast - The company forecasts revenues of 1.537 billion yuan in 2025 and 2.182 billion yuan in 2026, with net profits expected to reach 155 million yuan and 225 million yuan, respectively [2][24]. - The projected growth rates for revenue and net profit from 2024 to 2026 are 47.9% and 45.4%, respectively, indicating a strong recovery trajectory [2][24].