Investment Rating - The report initiates coverage with an "OUTPERFORM" rating, targeting a price of Rmb 45.40, indicating a potential upside of 45.6% from the current price of Rmb 31.19 [2][9][37]. Core Insights - WG Tech (JiangXi) Group is positioned as a leader in the glass substrate industry, focusing on advanced semiconductor displays and packaging, particularly in Mini and Micro LED technologies [3][5][20]. - The company has established a comprehensive product system covering various fields, including optical glass processing, backlight and display modules, and glass-based multilayer circuit boards [3][20]. - The report highlights that 2025 is expected to be a pivotal year for the commercialization of glass-based Mini LED technology, with significant demand anticipated from the large-size TV market [5][33]. Financial Overview - Revenue projections for 2025-2027 are Rmb 29.76 billion, Rmb 40.43 billion, and Rmb 52.90 billion, respectively, with net profits expected to be Rmb 0.13 billion, Rmb 2.53 billion, and Rmb 4.80 billion [9][35][36]. - The company anticipates a revenue increase of 22% in 2025, driven by the mass production of glass-based Mini LED substrates [4][33]. Business Development - The company has invested Rmb 1 billion to expand production capacity for glass substrates, die bonding, and SMT, aiming for an annual capacity of approximately 4 million glass substrates [9][37]. - WG Tech's subsidiaries, Jiangxi Dehong and Hubei Tonggewei, are crucial in developing glass-based Mini LED and TGV multilayer circuit boards, respectively [20][25]. Market Positioning - The glass substrate technology is expected to reshape the high-end display market, offering cost and performance advantages over OLED displays, particularly in large-size TVs [11][12]. - The report emphasizes the competitive edge of glass substrates in advanced packaging applications, particularly due to their thermal expansion properties aligning closely with silicon [15][19].