HGTECH(SZ:000988) Haitong Securities International·2025-11-17 11:50Investment Rating - Maintain Outperform rating with a target price of 83.59 RMB, representing a potential upside of 67% [4][10][11] Core Insights - The company experienced revenue pressure in Q3 due to industry factors affecting mid-to-low power laser and sensor businesses, but the data communication optical modules showed strong demand and significant gross margin improvement [4][10][11] - Projected net profit attributable to shareholders for 2025-2027 is 1.88 billion, 2.25 billion, and 2.78 billion RMB respectively, with corresponding EPS of 1.87, 2.24, and 2.77 RMB [4][10][11] Financial Summary - Total revenue for the first three quarters of 2025 was 11.04 billion RMB, up 22.62% YoY, with net profit attributable to shareholders at 1.32 billion RMB, up 40.92% YoY [4][11] - Q3 revenue was 3.41 billion RMB, down 10.33% YoY and 20.23% QoQ, with net profit at 410 million RMB, up 31.15% YoY but down 18.17% QoQ [4][11] - By business segment, sensing revenue was 3.17 billion RMB (up 13% YoY), connectivity revenue was 5.09 billion RMB (up 52% YoY), and laser + intelligent manufacturing revenue was 2.65 billion RMB [4][11] Business Performance - The data communication optical modules business maintained good demand and delivery, contributing to improved gross margins [4][10] - The company has sufficient inventory to meet strong industry demand, with inventory at 3.41 billion RMB, up 30.26% from the start of the year [4][12]