ECT(SZ:300679) Changjiang Securities·2024-05-06 01:32Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The company reported significant revenue and profit growth in Q1 2024, driven by strong performance in both the automotive and consumer electronics sectors, exceeding expectations [6][8]. - The automotive business continues to show high growth, while the consumer electronics segment benefits from improved industry conditions and new product launches [6][8]. - The company is expected to achieve high growth in the coming years, with projected net profits of 603 million, 798 million, and 1.01 billion yuan for 2024, 2025, and 2026 respectively [8]. Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 3.129 billion yuan and net profit of 356 million yuan. For Q1 2024, the operating revenue was 1.04 billion yuan, with a net profit of 162 million yuan, representing year-on-year growth of 68.77% and 244.43% respectively [6]. - The revenue breakdown for 2023 shows that automotive connectors generated 823 million yuan, accounting for 26.32% of total revenue, with a year-on-year growth of 60.06% [7]. Business Drivers - The growth in the automotive sector is attributed to the increasing demand for high-frequency and high-speed connectors due to the rise of smart vehicles and advanced driving technologies [8]. - The company has established strong relationships with major domestic automotive brands and is in the process of gaining certification from international clients, enhancing its market position [8]. Future Outlook - The company is expected to maintain high growth rates, particularly in the automotive sector, with significant contributions from traditional automotive manufacturers and new energy vehicle clients [13]. - The consumer electronics segment is anticipated to recover, with new business opportunities in BTB and electronic cigarette modules expected to enhance profitability [13].