HGTECH(SZ:000988) Guoxin Securities·2025-08-17 10:55Investment Rating - The investment rating for the company is "Outperform the Market" [4][6][26]. Core Views - The company reported a revenue of 7.629 billion yuan for the first half of 2025, representing a year-on-year growth of 44.66%, with a net profit attributable to shareholders of 911 million yuan, also up 44.87% [1][9]. - The rapid growth in the company's connectivity business, which generated 3.744 billion yuan in revenue, saw a significant year-on-year increase of 124%, driven by the surge in computing power demand from domestic internet and equipment manufacturers [2][11]. - The company is actively expanding its international production capacity and is positioned to benefit from the increasing penetration of silicon photonics and the ramp-up of high-speed optical modules [3][19]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 4.274 billion yuan, reflecting a year-on-year increase of 41.04%, and a net profit of 501 million yuan, which is a 49.62% increase compared to the same period last year [1][9]. - The gross margin for the first half of 2025 was 20.24%, a slight decrease of 3.4 percentage points year-on-year, primarily due to changes in product mix [19]. Business Segments - The connectivity business is the largest segment, with a revenue of 3.744 billion yuan, driven by the delivery of 400G and 800G optical modules [2][11]. - The sensing business generated 2.154 billion yuan in revenue, up 16.8%, benefiting from the penetration of new energy vehicles and export growth [2][11]. - The intelligent manufacturing segment saw a revenue of 1.676 billion yuan, a slight decline of 3%, but orders from the new energy vehicle sector increased by 43% [2][16]. Future Outlook - The company has slightly raised its profit forecast for 2025-2027, expecting net profits of 1.914 billion yuan, 2.435 billion yuan, and 2.964 billion yuan respectively [4][26]. - The current stock price corresponds to a price-to-earnings ratio (PE) of 27, 21, and 18 for the years 2025, 2026, and 2027 respectively [4][26].