HGTECH(SZ:000988) Zhongyuan Securities·2025-07-17 11:13Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the CSI 300 index within the next six months [18]. Core Insights - The company is experiencing rapid net profit growth, with a forecasted net profit of 8.9 to 9.5 billion yuan for the first half of 2025, representing a year-on-year increase of 42.43% to 52.03% [4]. - The company focuses on three core business areas: perception, connectivity, and intelligent manufacturing, with significant growth in revenue and profitability in these segments [7]. - The company has a strong position in the global optical module market, benefiting from high demand in domestic computing optical modules and successful overseas expansion [8]. Summary by Sections Financial Performance - The company reported a sales net profit margin of 12.12% in Q1 2025, with a decrease in expense ratios, indicating effective cost control [7]. - The projected net profits for 2025, 2026, and 2027 are 17.97 billion yuan, 23.10 billion yuan, and 28.16 billion yuan, respectively, with corresponding P/E ratios of 26.69X, 20.76X, and 17.03X [8][10]. Business Segments - The connectivity business is experiencing significant growth due to increased demand for high-speed optical modules in data centers, while the perception business is capitalizing on the rising penetration of electric vehicles [7]. - The intelligent manufacturing segment is also seeing rapid order growth, driven by equipment upgrades in industries such as electric vehicles and shipbuilding [7]. Research and Development - The company has full self-research design capabilities from silicon photonic chips to modules, with a 43.03% year-on-year increase in R&D expenses in Q1 2025 [7]. - The company is actively developing new technologies and materials for next-generation optical modules, including a 1.6T optical module and various product solutions [7]. Market Outlook - The global demand for optical modules is expected to benefit from the increasing computational power needs driven by AI and big data applications, with significant growth projected in the Chinese intelligent computing market [8].