ECT(300679) 华创证券·2024-06-25 23:01Investment Rating - The report gives a "Strong Buy" rating for the company, with a target price of 56.74 CNY based on a 36x PE for 2024 [12][13]. Core Insights - The company, Dalian Technology Co., Ltd., is a leading domestic connector manufacturer that has been deeply involved in the RF connector field since its establishment in 2006. It has expanded its product applications from consumer electronics to automotive electronics since 2013. The automotive connector business is expected to open a second growth curve for the company [5][20]. - The automotive connector market is experiencing rapid growth due to the acceleration of domestic substitution and the increasing demand for high-frequency and high-speed connectors driven by the electrification and intelligence of vehicles. The company has successfully entered the supply chains of several major domestic automotive manufacturers [5][12]. - In the consumer electronics sector, the company has a strong presence with major clients including Xiaomi, OPPO, and Huawei. The company is also expanding its overseas client base in non-mobile consumer electronics, optimizing its existing customer structure [5][12]. Summary by Sections Automotive Connectors - The automotive connector market has a wide range of applications and higher performance requirements compared to consumer electronics connectors. The company is focusing on high-frequency and high-speed connectors, which are in high demand due to the ongoing electrification and intelligence of vehicles. The company has successfully integrated into the supply chains of major domestic automotive manufacturers, leading to rapid growth in its automotive connector business [5][12][71]. Consumer Connectors - The company has been deeply involved in the consumer electronics connector market, with a focus on RF connection technology. It has established a solid customer base among leading smartphone manufacturers and is actively expanding into overseas markets. The BTB connector technology, which has high technical barriers, is expected to benefit from the growing demand in the 5G era, with the company having laid the groundwork for this technology since 2014 [5][12][13]. Financial Projections - The company is projected to achieve a net profit of 666 million CNY, 826 million CNY, and 1,009 million CNY for the years 2024, 2025, and 2026, respectively. The revenue is expected to grow significantly, with a forecasted total revenue of 4,393 million CNY in 2024, representing a year-on-year growth of 40.4% [9][12][13].