WG Tech(603773) 长城证券·2025-04-28 11:36Investment 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].