Goldman Sachs Global Tech: HG Tech (000988) Management Visit — SuperPoD Drives Optical Module Leadership, Global Customer Expansion
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Goldman Sachs Global Technology reiterated a positive outlook on HG Tech (000988) following a management visit, emphasizing that the company's SuperPoD technology will drive leadership in the optical module sector. The firm highlighted that this proprietary technology achieves higher integration levels and lower costs, forming the core competitive advantage for the business.
HG Tech has secured orders from multiple top-tier global customers, including leading cloud service providers and telecommunications equipment manufacturers. Driven by strong demand for 400G and 800G products, optical module revenue is projected to grow by more than 50% year-over-year in 2026. The traditional laser processing business remains robust, with 2025 revenue increasing approximately 20%, supported by new energy vehicle and consumer electronics demand. The sensor segment maintains steady growth with gross margins above 30%.
Management confirmed that new production lines will commence operations in the second half of 2026. The company sustains an 8% research and development expenditure ratio, focusing on silicon photonics and co-packaged optics. Trading at roughly 25 times earnings, below the industry average, Goldman views the valuation as highly attractive. Key risks involve customer concentration and the pace of technological iteration.