WG Tech(603773) 长城证券·2024-09-04 06:11Investment 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 [11]. Core Views - The company achieved a revenue of 1.042 billion yuan in H1 2024, representing a year-on-year growth of 34.78%. However, the net profit attributable to shareholders was -30 million yuan, a decline of 168.77% year-on-year [1]. - The company is focusing on expanding its glass-based applications in MiniLED backlighting, direct display, and advanced semiconductor packaging, which is expected to drive revenue growth [2]. - The company is actively developing its AMOLED display glass processing project, which is anticipated to start production in 2026, enhancing its competitive position in the display technology market [3][4]. Financial Summary - In H1 2024, the company reported a gross margin of 16.46%, down 2.92 percentage points year-on-year, and a net margin of -1.19%, down 1.34 percentage points year-on-year [2]. - The company's revenue is projected to grow from 2.066 billion yuan in 2024E to 3.488 billion yuan in 2026E, with corresponding net profits expected to improve from -40 million yuan in 2024E to 208 million yuan in 2026E [4][6]. - The company’s R&D expenses increased by 43.11% year-on-year in H1 2024, reflecting its commitment to product development [2]. Business Development - The company’s display business is the primary revenue driver, with significant projects underway, including a strategic partnership with SK mws for OLED display production materials [2][3]. - The company is also advancing its semiconductor business, with a project in Hubei expected to begin trial production by the end of 2024, focusing on high-performance computing applications [3][4]. - The report highlights the potential of glass substrates as a competitive alternative in semiconductor packaging due to their superior properties [2][3].