ECT(SZ:300679) KAIYUAN SECURITIES·2024-04-24 07:30Investment Rating - The investment rating for the company is "Buy" (maintained) [2][24]. Core Views - The company's Q1 2024 performance exceeded expectations, driven by significant growth in consumer and automotive electronics [15][24]. - The automotive connector revenue grew rapidly in 2023, with a year-on-year increase of 56.21%, supported by a diverse product range and successful integration with major domestic automotive clients [25]. - The company is focusing on stabilizing its position in the mobile consumer electronics market while expanding its reach to overseas clients in non-mobile sectors [7][16]. Financial Performance Summary - In 2023, the company reported total revenue of 3.129 billion yuan, a year-on-year increase of 5.37%, and a net profit attributable to shareholders of 356 million yuan, a decrease of 19.64% [15]. - For Q1 2024, the company achieved revenue of 1.04 billion yuan, representing a year-on-year growth of 68.77%, and a net profit of 162 million yuan, up 244.43% year-on-year [15]. - The gross margin for Q1 2024 was 35.31%, an increase of 3.52% compared to the previous year [15]. Future Projections - The company has revised its profit forecasts for 2024 and 2025 upwards, with expected net profits of 620 million yuan and 810 million yuan respectively, and has introduced a new forecast for 2026 at 1.03 billion yuan [15]. - The projected P/E ratios for 2024, 2025, and 2026 are 27.7, 21.0, and 16.5 respectively, indicating a favorable long-term outlook [15]. Product Strategy - The company is enhancing its R&D and manufacturing capabilities for high-frequency and high-speed automotive connectors, while also developing RF BTB products to meet the demands of the 5G millimeter-wave market [7][16]. - There is an active exploration of new products in the AI computing sector, aimed at strengthening market competitiveness [7].