Investment Rating - The investment rating for the company is "Buy" (首次) [3] Core Views - The company is positioned as a pioneer in domestic substitution for automotive connectors, benefiting from the trends of intelligent driving and consumer recovery [1] - The company has seen significant growth in both its automotive and consumer electronics connector businesses, with a stable market position and increasing orders [2][5] - The company plans to expand its production capacity and enhance its core competitiveness in response to the growing demand in the 5G millimeter-wave and AI mobile phone markets [6][8] Summary by Relevant Sections Financial Performance - In 2024, the company achieved revenue of 4.661 billion yuan, a year-on-year increase of 48.97%, and a net profit of 622 million yuan, up 74.73% year-on-year [5][10] - For Q1 2025, the company reported revenue of 1.196 billion yuan, a 15.02% increase year-on-year, but a net profit decline of 23.80% [10] Revenue Projections - The company expects total revenue to reach 5.909 billion yuan in 2025, with a year-on-year growth rate of 26.8%, and net profit to be 798 million yuan, growing by 28.2% [7][19] - Revenue from automotive connectors is projected to grow significantly, with estimates of 23.67 billion yuan in 2025, reflecting a 62% year-on-year increase [18] Market Position and Strategy - The company has established itself as a core supplier for major smartphone brands, including Xiaomi, Oppo, and Huawei, and is expanding its presence in the automotive sector with leading domestic manufacturers [2][9] - The company is actively developing applications for its products in the AI sector, aiming to capture growth opportunities in AI servers and related technologies [8][16] Product Segmentation - The company’s product lines include RF connectors, high-speed connectors, and electromagnetic compatibility components, with a focus on both mobile and automotive applications [5][11] - The company is expanding its BTB product line, leveraging its existing resources and market trends to enhance revenue growth [2][15]

Group 1: Company Performance Highlights - The company achieved a revenue of ¥4,661,219,937.52 in 2024, representing a growth of 48.97% compared to the previous year [3] - Net profit attributable to shareholders reached ¥622,308,886.15, marking a 74.73% increase year-on-year [3] - The net cash flow from operating activities was ¥511,044,075.67, up by 57.99% from the previous year [3] Group 2: Product Performance and Market Demand - RF connectors and interconnect systems have a high and stable market share in the mobile terminal sector [2] - The electromagnetic compatibility components have made significant progress in non-mobile consumer electronics, achieving large-scale production and delivery to key clients [2] - Automotive connector revenue has seen rapid growth, with a market share continuously increasing [2] Group 3: Strategic Plans and Future Outlook - The company plans to focus on the 5G technology and AI mobile sectors while expanding its overseas customer base in non-mobile consumer electronics [2] - Future product development will include enhancing Ethernet products related to automotive intelligence and expanding into fields like humanoid robots and AI data centers [2] - The company aims to strengthen its domestic production capabilities to meet the growing demand for automotive connectors as China increases its automotive production capacity [5] Group 4: Challenges and Improvement Measures - The company acknowledges that its overseas business has room for profit margin improvement compared to domestic operations [4] - Management will be optimized to enhance efficiency and address challenges in overseas operations [4] - The company has no current plans for mergers or acquisitions but will seek opportunities for collaboration and capital operations to enhance synergy [5] Group 5: Financial Health and Shareholder Returns - The company maintains a low debt ratio, with a consolidated debt ratio of 30.49% and a parent company debt ratio of 27.48% [12] - The company has consistently returned profits to investors and aims to balance development with shareholder returns through reasonable profit distribution plans [6] Group 6: Market Position and Competitive Edge - The company is a leading supplier in the domestic RF connector industry and has entered the supply chains of major global smartphone brands [9] - It has been recognized as one of the top 100 electronic component enterprises in China for nine consecutive years [9] - The company is committed to quality and service, which has been a key strategy for increasing market share [11]