HGTECH(SZ:000988) KAIYUAN SECURITIES·2025-11-19 09:12Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has established a diversified business structure in the optoelectronics field, positioning itself as a leader in optical communication. It has three main business segments: intelligent manufacturing equipment supported by laser processing technology, optical and wireless connection businesses supported by information communication technology, and sensor businesses supported by sensitive electronic technology. The rapid development of artificial intelligence is expected to drive demand for high-speed optical modules, enhancing the company's market share and long-term growth potential [4][5][6]. Summary by Sections 1. Diversified Layout in the Optoelectronics Field - The company has transitioned from a university-affiliated enterprise to an innovative high-tech company, establishing a strong product matrix around lasers. It has a significant market position in the optoelectronics sector and aims to enhance the reliability of the optical module industry through active participation in standard-setting [15][17]. 2. AI High-Speed Era and Opportunities in Optical Communication - The optical communication sector is experiencing robust growth driven by the demand for AI computing power. The company is positioned to benefit from the increasing need for high-speed optical modules, with expectations of significant revenue growth in the coming years [40][68]. 3. Financial Summary and Valuation Indicators - The company is projected to achieve revenues of 17.935 billion yuan in 2025, with a year-on-year growth of 53.2%. The net profit attributable to shareholders is expected to reach 1.955 billion yuan, reflecting a growth of 60.2% [7]. The current price-to-earnings ratio is 36.9 times for 2025, decreasing to 22.2 times by 2027 [4]. 4. Business Performance and Growth Potential - The intelligent manufacturing segment has shown resilience, while the connection business has experienced significant growth, particularly in AI applications. The company has developed high-end optical modules and is actively pursuing new materials and technologies to enhance its product offerings [6][31]. 5. Research and Development Focus - The company has increased its R&D investment significantly, with R&D expenses growing from 331 million yuan in 2020 to 878 million yuan in 2024, indicating a compound annual growth rate of 27.64%. This focus on innovation is expected to drive future growth and improve profitability [38][39].