GLONGHUI July 19丨Anxin Securities's research report on the 18th pointed out that due to short-term performance pressure due to delayed orders, Yihua Co., Ltd. (002897.SZ)'s Q2 net profit increased 153%-300% month-on-month to a significant improvement. According to the company announcement, Tianjin Shengwei's revenue for the first quarter of 2023 was 12.39 million, an increase of 320% over the previous year. The company strengthens customer binding by jointly establishing subsidiaries with downstream customers. It is expected that volume expansion will begin in the second half of the year to contribute to the company's performance. The company takes communication connectors as the core, consumer electronics connectors as an important component, and extends other connectors such as automobiles as the development strategy at this stage. Currently, the company is one of the few domestic enterprises that have achieved mass production of high-speed connectors, and has established long-term cooperative relationships with many high-quality customers including Huawei, ZTE, Foxconn, Hesuo, and Duratel. The company has more than 20 years of communication connector research and development experience and has expanded the photovoltaic bracket business. The company's operating income from 2023 to 2025 is expected to be 52.60/61.87/7.534 billion yuan, up 5.0%/17.6%/21.8% year on year; net profit from the return mother is 2.68/3.64/523 billion yuan respectively, up 11.7%/35.8%/43.7%; corresponding EPS is 1.57/2.13/3.06 yuan respectively. The company was given 23.5 times PE in 2024, corresponding to the target price of 50.06 yuan, and maintained the “buy-A” investment rating.