WG Tech(SH:603773) Great Wall Securities·2024-03-05 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [34]. Core Insights - The company is accelerating the construction of a glass-based chip-level packaging substrate project with an investment of RMB 1.8 billion, increasing the registered capital of its wholly-owned subsidiary, Hubei Tongge Microelectronics Technology Co., Ltd. to RMB 300 million [2][3]. - The total investment for the glass-based chip-level packaging substrate project is estimated at RMB 1.216 billion, with a construction period of 24 months. This project aims to enhance the company's product structure and optimize its offerings in semiconductor packaging materials and technologies [3][21]. - The company has successfully transitioned Hubei Tongge Micro to a wholly-owned subsidiary, which will focus on the production of glass-based semiconductor advanced packaging substrates [3][21]. Financial Summary - The company expects to achieve revenues of RMB 1.9 billion in 2023, with a year-on-year growth rate of 35.9%. The projected net profit attributable to the parent company is expected to be a loss of RMB 4 million, improving significantly from previous years [18][21]. - For the years 2024 and 2025, the company anticipates net profits of RMB 184 million and RMB 256 million, respectively, with corresponding EPS of RMB 1.07 and RMB 1.50 [21][18]. - The company's revenue growth rates are projected to be 38.0% in 2024 and 25.6% in 2025, indicating a strong upward trend in financial performance [18][21]. Industry Context - The report highlights that glass-based materials are expected to become the next generation of semiconductor packaging materials, with applications in advanced packaging, artificial intelligence, and Micro LED displays [7]. - The company's proprietary TGV technology is positioned to capitalize on the growing demand for glass-based materials in semiconductor packaging and display sectors, with several projects already validated by customers [7][21].