Investment Rating - The report maintains an "Accumulate-A" rating for the company, indicating a positive outlook based on growth potential and performance expectations [9][23]. Core Views - The company's performance is driven by strong growth in the home appliance connector business, with a revenue increase of 18.20% year-on-year in 2023, significantly outpacing overall company growth [2][23]. - The automotive connector segment faced challenges, with a revenue decline of 7.0% in 2023, but there are expectations for future growth as production ramps up with key clients [2][23]. - The company is expected to benefit from domestic substitution in the home appliance sector and the ramp-up of automotive connector production, which may enhance revenue and gross margin [23]. Financial Performance - In 2023, the company achieved a revenue of 1.216 billion yuan, a year-on-year increase of 16.56%, and a net profit of 147 million yuan, up 33.47% [1][3]. - The gross margin improved to 25.7% in 2023, reflecting a 2.0 percentage point increase from the previous year [3][12]. - The company’s cash flow from operating activities turned positive at 169 million yuan in 2023, compared to a negative cash flow in 2022 [5][25]. Financial Projections - Revenue is projected to grow to 1.487 billion yuan in 2024, representing a year-on-year increase of 22.3%, with net profit expected to reach 205 million yuan, up 39.4% [3][12]. - The report anticipates continued growth in net profit, forecasting 307 million yuan by 2026, with a compound annual growth rate of approximately 23.4% from 2023 to 2026 [9][12]. - The company’s P/E ratio is expected to decrease from 26.8 in 2023 to 12.8 by 2026, indicating improving valuation metrics as earnings grow [3][12].
家电连接器增长良好，静待新业务发力