ECT(SZ:300679) Guoxin Securities·2024-04-28 03:00Investment Rating - The report maintains a "Buy" rating for the company [16][25]. Core Views - The company's revenue and non-GAAP net profit reached historical highs in Q1 2024, driven by a recovery in the Android supply chain and rapid growth in the automotive connector business [2][13]. - The company increased its R&D expenses significantly, focusing on AI-related high-frequency and high-speed connectors, indicating a strategic shift towards emerging technologies [2]. - The competitive landscape remains stable, with the company benefiting from the increasing intelligence of new energy vehicles, which is expected to drive continued high growth in its automotive connector business [2]. - The traditional consumer electronics business is recovering due to the resurgence of demand in the Android ecosystem, with stable gross margins and increased market share among key clients [2]. Financial Performance Summary - In 2023, the company achieved revenue of 3.129 billion yuan (YoY +5.4%) and a net profit of 356 million yuan (YoY -19.6%), with a non-GAAP net profit of 348 million yuan (YoY +19.7%) [2]. - Q4 2023 revenue was 924 million yuan (YoY +22.4%, QoQ +10.1%), with a net profit of 109 million yuan (YoY +254.5%, QoQ -11.0%) [2]. - Q1 2024 revenue reached 1.04 billion yuan (YoY +68.8%, QoQ +12.5%), with a net profit of 162 million yuan (YoY +244.4%, QoQ +48.8%) [2]. Profit Forecast and Valuation - The forecast for net profit has been revised upwards for 2024-2026, with expected figures of 615 million yuan (+72.6%), 808 million yuan (+31.5%), and 1.114 billion yuan (+37.8%) respectively [2][14]. - The current market valuation corresponds to a PE ratio of 29x for 2024, 22x for 2025, and 16x for 2026 [2][14].