ECT(SZ:300679) Shanxi Securities·2024-04-24 06:00Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a strong potential for growth in the coming years [30]. Core Insights - The company is expected to achieve significant revenue growth driven by its automotive electronics and consumer electronics segments, with projected revenues of 42.51 billion, 54.28 billion, and 63.60 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 35.9%, 27.7%, and 17.2% [30]. - The company's net profit is forecasted to increase substantially, with estimates of 6.41 billion, 8.42 billion, and 10.38 billion yuan for the same years, representing growth rates of 80.0%, 31.4%, and 23.2% [30]. - The report highlights the company's strong market position in the connector industry, leveraging its technological advantages and established customer relationships to capture market share in both domestic and international markets [24][25]. Financial Data and Valuation Summary - The company reported a revenue of 31.29 billion yuan in 2023, a year-on-year increase of 5.37%, with a net profit of 3.56 billion yuan, down 19.64% from the previous year [23]. - In Q1 2024, the company achieved a revenue of 10.40 billion yuan, a significant increase of 68.77% year-on-year, and a net profit of 1.62 billion yuan, up 244.43% [22][23]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.52, 1.99, and 2.46 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 27.3, 20.8, and 16.9 [30]. Market Performance and Growth Drivers - The automotive connector segment is experiencing rapid growth, with a revenue increase of 60.06% in 2023, while the consumer electronics segment is recovering from a downturn [28]. - The company has successfully expanded its customer base to include major automotive manufacturers and leading consumer electronics brands, positioning itself well for future growth [25]. - The report emphasizes the importance of ongoing research and development, with a significant increase in R&D expenses, indicating a commitment to innovation and long-term growth [22].