Core Viewpoint - The company, Wogao Optoelectronics (603773), is actively developing glass optical devices through its subsidiary, Hubei Tonggewei, for applications in semiconductor etching equipment and lithography machines, with multiple projects currently in progress [1] Group 1 - The company has engaged in product technology development with clients for three years [1] - Several projects are in the stages of small batch delivery and ongoing collaborative research and development [1] - The market introduction of end-user equipment is expected to drive an increase in the delivery quantity of these products [1]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [4][20]. Core Views - The company is experiencing rapid revenue growth, particularly in the glass-based MiniLED backlight segment, which is expected to contribute to profitability [1][3]. - The financial outlook shows a projected increase in revenue from 18.14 billion CNY in 2023 to 40 billion CNY by 2027, with a compound annual growth rate (CAGR) of 14.3% [1]. - The company is focusing on enhancing its core capabilities and market share in traditional display business, with a notable increase in revenue from its glass processing segment [2]. - The company has successfully entered mass production of glass-based MiniLED backlight products, which are being adopted in various applications, including gaming monitors and TVs [3][8]. Financial Summary - Revenue for 2024 is projected at 22.21 billion CNY, a year-on-year increase of 22.5%, while the net profit is expected to be -1.22 billion CNY, a significant decline from the previous year [1]. - The gross margin for 2024 is estimated at 17.15%, down 3.06 percentage points from the previous year, primarily due to a higher proportion of lower-margin products [2]. - The company anticipates a recovery in profitability as new projects are launched and industry demand improves, with net profits projected to reach 0.35 billion CNY in 2025 and 1.60 billion CNY by 2027 [12]. Business Developments - The company’s subsidiary has achieved a production capacity of 1 million square meters for glass-based MiniLED substrates, which is now in commercial application [3]. - The company is also expanding its glass-based TGV multilayer circuit boards and optical devices, with new production capacity expected to enhance revenue streams [9][11]. - The company is actively engaging in employee stock ownership plans and share buybacks to boost market confidence and align management interests with long-term growth [10].