Investment Rating - The report maintains a "Buy" rating for the company with a target price of 45.53 CNY, based on a comparable company PE average valuation of 29 times for 2025 [3][6]. Core Insights - The company is expected to achieve rapid profit growth, with new business segments such as robotics anticipated to become new growth drivers [2]. - The forecasted net profit attributable to the parent company for 2025-2027 is projected to be 826 million, 1.061 billion, and 1.314 billion CNY respectively, with slight adjustments made to gross margin estimates [3]. - The company has shown strong revenue growth, with a 28.5% year-on-year increase in the first three quarters, and a 31.4% increase in Q3 alone [11]. Financial Performance Summary - Revenue is expected to grow from 7,137 million CNY in 2023 to 17,789 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of 26.6% to 17.9% [5][12]. - The gross profit margin is projected to stabilize around 20.6% to 21.5% over the forecast period, while the net profit margin is expected to improve from 6.5% in 2023 to 7.4% in 2027 [5][12]. - The company's earnings per share (EPS) is forecasted to increase from 0.89 CNY in 2023 to 2.50 CNY in 2027 [5][12].

Core Insights - The company achieved steady growth in 2024, focusing on its core businesses of connectors and photovoltaic brackets, resulting in revenue and net profit increases [1] - Annual revenue reached 6.097 billion yuan, a year-on-year increase of 20.51%, while net profit was 124 million yuan, a slight increase of 1.63% [1] - The company plans to distribute a cash dividend of 1 yuan per 10 shares, totaling 19.4 million yuan, with a dividend rate of approximately 15.63% [1] Business Segments - The photovoltaic bracket business generated revenue of 3.453 billion yuan, a year-on-year increase of 10.07%, accounting for 56.64% of total revenue [2] - The connector business saw significant growth, with revenue of 2.464 billion yuan, a year-on-year increase of 38.10%, driven by demand from 5G and data centers [2] - Overseas revenue accounted for 52.13% of total revenue, reflecting a year-on-year increase of 5.18 percentage points, indicating the effectiveness of the company's globalization strategy [2] Research and Development - The company invested 198 million yuan in R&D, representing 3.25% of total revenue, with 707 R&D personnel, making up 10% of the total workforce [2] - Ongoing development of high-tech products, such as the NGSFP-DD400G high-speed IO port connector and 2.4 series fixed brackets, enhances the product line and market competitiveness [2] Competitive Position - The company is one of the few in China with complete capabilities in precision die-casting, thermal components, and electroplating for connector production, which is a core competitive advantage [3] - The company has successfully developed 5GSFP and SFP+ series products, achieving industry-leading levels in technology R&D and lean production [3] - The company has received multiple patents, including 77 invention patents, showcasing its commitment to innovation and maintaining a leading position in the industry [3] Long-term Strategy - A restricted stock incentive plan was launched to attract and retain core talent, granting 6.8097 million shares at a price of 18.52 yuan per share [4] - The company’s subsidiary, Leqing Yihua New Energy Technology Co., focuses on manufacturing and selling core components for photovoltaic tracking brackets, establishing a strong position in the international market [4] - Future plans include deepening the connector business, expanding market share, and enhancing the brand image while increasing R&D efforts for high-tech products [5]