Tianfeng ** shares *** Pan Hui, Xu Junfeng recently conducted research on ECT and released a research report "Quality and return double improvement, optimistic about the company to achieve unexpected growth", this report gives ** rating to ECT technology, the current stock price is 2792 yuan.
Electro-connectivity (300679).
Event: In order to practice the development concept of "investor-oriented" listed company and safeguard the interests of all shareholders of the company, based on the confidence and value recognition of the company's future development prospects, the company's management will continue to improve the company's management level, and continuously improve the company's core competitiveness, profitability and comprehensive risk management capabilities, in order to achieve rapid development and give back to the majority of investors.
Comments: The company released the "Quality and Return Double Improvement" action plan, and since the company was listed in 2017, the company's revenue has shown a steady increase trend; In recent years, the company's forward-looking layout of automotive connectors, breaking the overseas monopoly, with the rapid increase in the penetration rate of domestic automotive intelligence, the company is expected to benefit significantly.
In terms of investor returns, the company has continued to pay dividends since its listing, and the annual cash dividend ratio has exceeded 40% of the net profit attributable to shareholders of listed companies in the past three years. Since 2019, three share repurchase plans have been approved and implemented. In the future, the company expects to continue to improve the level of shareholder return and implement a "long-term, stable and sustainable" shareholder value return mechanism.
In 2023Q4, the prosperity will continue to improve. It is optimistic that the company's consumer electronics business will continue to benefit from Huawei's return and the overall prosperity of the industry, and the mobile phone business is expected to continue to improve quarter-on-quarter compared with the third quarter and the fourth quarter. In terms of automobiles, the company has a complete product line of high-speed connectors, which are gradually introduced into major domestic manufacturers, and new customers will be introduced in the fourth quarter and 2024 or gradually increase the volume, helping the company's automotive high-speed connector business to continue to grow rapidly. At the same time, benefiting from the hot sales of Huawei's M7 intelligent driving model, the recognition of advanced assisted driving of automobiles has increased rapidly, which is expected to catalyze the rapid increase in the adoption rate of assisted driving in the industry, and the company, as a leading supplier of core components, is expected to benefit significantly.
In 2024, Android mobile phones are expected to continue to recover, benefit from the automobile war, and the domestic substitution process is expected to increase rapidly. Since Huawei's return, its market share has recovered rapidly, and in 2024, with the release of Huawei's new phones, it is expected to further increase its market share. At the same time, this year, the first war of automotive terminals has started again, and the demand for price reduction of the first chain cost has been further improved, and the company's automotive connector products are expected to benefit and accelerate the introduction of downstream customers.
Investment suggestion: optimistic that the company will benefit from the recovery of consumer electronics and mobile phones and the rapid increase in the penetration rate of intelligent automobiles. It is expected that the company will achieve a profit attributable to the parent company of 386/6.04/8.5.7 billion yuan, maintaining the "** rating."
Risk warning: the prosperity of the downstream mobile phone industry is less than expected, the progress of autonomous driving is less than expected, and the volume of automobile customers is less than expected.
*According to the calculation of the research report data released in the past three years, the research team of Xu Tao of CITIC has conducted in-depth research on the stock, and the average accuracy of the past three years is as high as 8538%, and its **2023 attributable net profit is 43.8 billion, and the **PE converted according to the current price is 2691。
The latest profit** breakdown is as follows:
A total of 5 institutions have rated the stock in the last 90 days, ** 5 ratings; The average institutional price target over the last 90 days is 430。
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