HGTECH(SZ:000988) Ge Long Hui A P P·2025-11-20 07:06Core Viewpoint - The report from Open Source Securities highlights that Huagong Technology has established a comprehensive product matrix centered around lasers, forming three major business segments: intelligent manufacturing equipment supported by laser processing technology, optical and wireless connection businesses supported by information communication technology, and sensor business supported by sensitive electronic technology [1] Business Segments - Intelligent Manufacturing Equipment: This segment relies heavily on laser processing technology, positioning the company as a leader in the domestic optoelectronic field [1] - Optical and Wireless Connection: This business is supported by information communication technology, catering to the growing demand for high-speed optical modules driven by rapid advancements in artificial intelligence [1] - Sensor Business: This segment is underpinned by sensitive electronic technology, further diversifying the company's offerings [1] Market Position and Growth Potential - The company is recognized as a prominent player in the optoelectronic sector with a multi-segment layout, which enhances its market position [1] - With the accelerating development of artificial intelligence both domestically and internationally, there is a burgeoning demand for high-speed optical modules, which the company is well-positioned to meet [1] - The company's strong R&D capabilities are expected to lead to an increase in market share and significant long-term growth potential [1] Financial Projections - The projected net profit attributable to shareholders for the years 2025, 2026, and 2027 is estimated to be 1.96 billion, 2.55 billion, and 3.26 billion yuan respectively [1] - The current closing price corresponds to price-to-earnings ratios of 36.9 times, 28.3 times, and 22.2 times for the respective years [1] - The report initiates coverage with a "Buy" rating based on these projections [1]