ECT(300679) 申万宏源·2024-06-10 05:01Investment Rating - The report initiates coverage with an "Outperform" rating for the company, projecting a target market value of 19.2 billion, indicating a 14% upside potential from the current market value [11][129]. Core Insights - The company, specializing in micro RF connectors and interconnect systems, has a stable market share in the mobile terminal market and is experiencing significant growth in the automotive connector segment, which has become the largest revenue contributor [11][19][162]. - The automotive connector business is expected to grow rapidly, with projected revenue increases of 77%, 60%, and 43% from 2024 to 2026, while the consumer electronics segment is anticipated to grow at a steadier pace of 15.2%, 14.1%, and 10.3% during the same period [39][80][230]. - The company has established a strong presence in the supply chains of major domestic automotive manufacturers, including Geely, Great Wall, BYD, and Changan, and has a global market share of approximately 8.2% in the high-frequency and high-speed connector sector [11][190][190]. Summary by Sections Company Overview - The company has been focusing on RF connectors since its establishment in 2006 and has expanded into automotive connectors, covering both consumer electronics and automotive electronics sectors [19][98]. - The company ranks 53rd among the top 100 connector manufacturers globally, indicating a leading position domestically but still trailing behind international giants [11][21]. Market Trends - The consumer electronics market, particularly the smartphone segment, is expected to recover significantly by 2024, with a projected increase in global smartphone shipments [34][157]. - The BTB connector market is anticipated to grow, with significant opportunities for domestic manufacturers to capture market share from established foreign competitors [198][201]. Financial Projections - Revenue forecasts for the company are set at 41.1 billion, 53.6 billion, and 66.8 billion for 2024 to 2026, with net profits expected to reach 6.04 billion, 8.11 billion, and 10.21 billion respectively [12][84][129]. - The overall gross margin is projected to remain stable, with automotive connectors maintaining a gross margin of around 40% and consumer electronics gross margins expected to be around 32.2% to 32.5% from 2024 to 2026 [107][81][107].