HGTECH(SZ:000988)2026-01-19 02:29Summary of HG Tech (000988.SZ) Management Visit Company Overview - Company Name: HG Tech - Ticker: 000988.SZ - Location: Wuhan, China - Specialization: Laser equipment, optoelectronic devices, sensors - Market Exposure: AI data centers, consumer electronics, industrial, automotive - Ranking: Global top 9 in optical modules in 2024 [2] Key Industry Insights 1. AI Infrastructure Growth: - Positive outlook on AI infrastructure ramp-up in both US and China Cloud markets - Projected demand for AI chips: 11 million in 2025, 16 million in 2026, and 21 million in 2027 - ASICs expected to account for 38%, 40%, and 50% of AI chips in 2025, 2026, and 2027 respectively [1][3] 2. Optical Modules Demand: - Anticipated specification upgrades towards 1.6T in US Cloud and rising 800G in China Cloud - Expected global shipment of optical modules: 38 million units for 800G and 14 million units for 1.6T in 2026 - 1.6T optical modules projected to be sourced 60% from GPU AI servers and 40% from ASIC AI servers [1][3] 3. Market Dynamics: - Despite GPU restrictions, demand for generative AI is increasing in China, supported by local ecosystem growth post-launch of leading foundation models [1] - The company is expanding its market reach from China Cloud to US Cloud, enhancing competitiveness in high-end modules [3] Business Growth Drivers 1. Optical Modules: - Solid demand driven by AI infrastructure and continuous specification upgrades - Anticipated double-digit growth in optical module shipments in China for 2026, particularly in 800G and silicon photonics [3] 2. Laser Equipment: - Expected recovery in 2026, driven by sectors such as 3D printing, wearables, shipbuilding, precision agriculture, and PCB industry [3] Investment Recommendations - Buy Recommendations: - Epiwafer / CW laser: Landmark, VPEC - Optical module: Innolight, Eoptolink, TFC Optical - ODM: Ruijie [1] Additional Insights - Management maintains a positive outlook on business growth for 2026, emphasizing the importance of high-end optical modules and laser equipment recovery [3]