ECT(SZ:300679) Soochow Securities·2024-04-23 13:32Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6 to 12 months [10][12]. Core Insights - The company has shown significant growth in Q1 2024, with revenue reaching 1.04 billion yuan, a year-on-year increase of 69%, and net profit of 162 million yuan, up 244% year-on-year [1][12]. - The automotive connector business is a key growth driver, achieving revenue of 823 million yuan in 2023, a 60% increase year-on-year, and is expected to continue this growth trajectory [11][12]. - The recovery in consumer electronics demand, particularly driven by the resurgence of smartphone shipments and the introduction of high-end smart driving models, is expected to contribute to the company's performance [2][12]. Summary by Sections Financial Performance - Total revenue for 2023 was 3.13 billion yuan, a 5% increase from the previous year, while net profit was 356 million yuan, a decrease of 20% [1]. - The company forecasts significant revenue growth, projecting 4.73 billion yuan in 2024, representing a 51.28% increase year-on-year [1][12]. Business Segments - The consumer electronics segment is benefiting from the rise of Huawei and industry recovery, with stable market share in key products like RF connectors [2]. - The automotive segment is expected to see high growth due to increased sales of high-end smart driving vehicles and the expansion of client base among major automotive manufacturers [11][12]. Valuation Metrics - The report adjusts the net profit forecasts for 2024-2026, raising the estimates to 700 million yuan for 2024 and 950 million yuan for 2025, with a new forecast for 2026 at 1.18 billion yuan [12]. - Corresponding P/E ratios for 2024-2026 are projected at 25, 18, and 15 times, respectively, indicating a favorable valuation outlook [12].