Domestic leading industrial control connectors, layout automotive and new energy connectors. The company has formed a layout where industrial control connectors are the main body, and automotive and new energy connectors are developed. The products are widely used in industrial control and automation equipment, new energy vehicle “three electric” systems, photovoltaic inverter systems and other application scenarios.

Industrial control connectors are the basic platform for the company's long-term development. The core benefits from the increase in domestic industrial control connector market demand and the company's share. At the same time, the company's breakthroughs in major overseas customers have also laid the foundation for the company to accelerate overseas market expansion. Domestic industrial control connector market demand has benefited from a recovery in industrial demand and an increase in the level of domestic industrial automation. The rise of new industrial automation equipment such as industrial robots has accelerated the development of industrial control connectors. The increase in the company's share benefits from the acceleration of domestic substitution and the company's continuous research and development of new products to maintain its competitiveness. Breakthroughs in overseas markets are expected to rely on the company's breakthroughs in overseas customers such as Siemens, Panasonic, and Mitsubishi, and further expand the target market to its overseas markets.

Automotive connectors are currently the company's fastest growing business. The core benefits from increased market share of medium- and low-voltage signal connectors and breakthroughs in the high-speed connector market. The company is expanding production capacity and category expansion of automotive connectors. The stock of customers continues to cultivate, and there is still plenty of room to increase its share. The automotive high-speed connector field has developed from 0 to 1, focusing on visual perception in the early stages of intelligent driving, vehicle body domain control PCB board end connection solutions, Type-C connector components with a waterproof rating above IP68, and high-speed Ethernet connector components. Currently, it has received project targets from many automakers and module manufacturers, and some product lines have already begun mass production and shipment.

New energy connectors are the company's high-growth business. The company lays out the field of wind and solar storage, actively expands production capacity and automation levels, and is deeply tied to strategic customers, benefiting from the rapid development of the industry.

Investment advice: The company's net profit for 2023-2025 is estimated to be 1.42, 180, and 251 million yuan, respectively, and the net profit growth rates to mother will be 26.7%, 26.9%, and 39.2%, respectively. The PE corresponding to the current stock price is 34/27/19 times, respectively. First coverage, giving a “buy” rating.

Risk warning: impact of international macroeconomic fluctuations; risk of fluctuations in raw material procurement prices; increased risk of industry competition