ECT(SZ:300679) Guotou Securities·2024-04-23 09:00Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 50.05 CNY [8]. Core Views - The company reported strong Q1 2024 performance with a revenue of 10.40 billion CNY, a year-on-year increase of 68.77%, and a net profit of 1.62 billion CNY, up 244.43% year-on-year [2][3]. - The automotive connector segment achieved a revenue of 8.23 billion CNY in 2023, reflecting a growth of 60.06% year-on-year, with a gross margin of 40.01% [3]. - The recovery in consumer electronics demand since Q4 2023 has positively impacted the company's related product performance, with revenue growth in RF connectors and EMC components [4]. Financial Performance - In 2023, the company achieved total revenue of 31.29 billion CNY, a year-on-year increase of 5.37%, and a net profit of 3.56 billion CNY, a decrease of 19.64% [2]. - The company expects revenue growth rates of 35.23%, 27.08%, and 22.60% for 2024 to 2026, with net profit growth rates of 69.33%, 24.79%, and 22.45% respectively [13]. - The gross profit margin for Q1 2024 was reported at 35.31%, an increase of 4.05 percentage points from the previous quarter [2]. Market Position and Growth Potential - The company is positioned as a leading domestic player in the automotive high-speed connector market, benefiting from the trend of automotive intelligence and entering the supply chains of major domestic manufacturers [7][13]. - The company is also expanding into high-speed connection products for servers and robotics, aiming to capture new growth opportunities in the AI era [12].