New Share Preview | From A to H: Hgtech (000988.SZ) uses AI power to sprint international capital with the "Second Curve"

Standing at the dual wind of AI computing power and global data center infrastructure, Hgtech, with the explosive growth of optical modules, a solid foundation in intelligent perception, and technological accumulation in intelligent manufacturing, is attempting to open up new valuation space through an "A+H" layout. However, rapid decline in optical module prices, fluctuations in overseas supply chains, and intensifying industry competition are all hurdles that must be overcome. Going public in Hong Kong is not only a further capital supplement, but also a key step for the company to move from being a leading player in China to a global leader in the optoelectronics industry. If it can continue to maintain its technological leadership and cost advantages, Hgtech is expected to write its own value reevaluation story in the long cycle of AI computing power. In the global computing power infrastructure frenzy triggered by AI, the optical module track, as a core hardware component, is experiencing an unprecedented golden development period. On April 13th, information disclosed by the Hong Kong Stock Exchange showed that Hgtech, a company listed on the A-share market (000988.SZ), has officially submitted its application for a main board listing with CITIC SEC as the sole sponsor. This signifies that this "national team" player, born out of Huazhong University of Science and Technology and deeply rooted in the fields of lasers and optical communications for over twenty years, is accelerating its global capital layout through the "A+H" dual-listing, aiming to consolidate its leading position in the core track of AI computing power through the international capital market. The prospectus reveals a hardcore technology company with sustained high growth in performance in the AI wave. From 2023 to 2025, Hgtech's revenue steadily increased from 10.31 billion yuan to 14.355 billion yuan, and net profit also rose to 1.454 billion yuan. Its growth engine lies in the optical interconnection business deeply linked to the demand for AI computing power. As the sixth largest optical interconnect product manufacturer globally, the company has not only achieved large-scale deliveries in the high-end optical module markets such as 800G and 1.6T, but also forward-lookingly laid out next-generation solutions of 3.2T and even 12.8T, demonstrating significant technological strength and industry positioning advantages. However, Hgtech's ambitions go beyond optics. The company has built up three major business matrices of "Optical Interconnection, Intelligent Perception, and Intelligent Manufacturing," forming a powerful synergy for collaborative development. In the field of intelligent perception, its PTC heater for new energy vehicles holds the first global market share; in the field of intelligent manufacturing, its laser equipment ranks among the top in the Chinese market. The initiation of a Hong Kong IPO is not only a key move in its globalization strategy, but also a preparation for future technological iterations, capacity expansion, and global market expansion in the dual wind of AI and high-end manufacturing. Standing at the intersection of the dual historical opportunities of AI computing power and domestic substitution, Hgtech, holding the core growth pole of optical modules and possessing strong foundations in sensing and manufacturing, will its journey to Hong Kong be successful and how will it reshape the competitive landscape of the global optoelectronics industry? "Old Three Patterns" Reshaping the Landscape AI Engine Ignites Growth "Second Curve" The prospectus shows that three years ago, Hgtech's business structure was a typical "balanced tripod": the optical interconnection, intelligent perception, and intelligent manufacturing sectors each contributed about a third of the revenue, with shares fairly balanced. However, the data for 2025 heralds the complete breakdown of this balance. In 2025, Hgtech's optical interconnection business achieved revenue of 6.097 billion yuan, a year-on-year growth of 53.39%, with the revenue share soaring from 31.2% in 2023 to 42.4% in 2025, an increase of 8.5 percentage points in just one year. The largest contributor to this was the "AI computing power optical module" subsector, which, from a marginal role with a revenue share of only 2.6% in 2023, surged to 18.5% in 2025, becoming the absolute main driver of overall growth. In contrast, the revenue share of the intelligent manufacturing business shrank from 30.9% in 2023 to 25.4% in 2025, although the absolute value continued to grow (from 3.19 billion yuan to 3.636 billion yuan, a year-on-year growth of 4.13%), but its share in the total revenue pie had noticeably shrunk. This is not because the business itself is regressing, but rather because the explosive growth of the optical interconnection business is happening too fast. In addition, the revenue share of the intelligent perception business decreased slightly from 31.5% in 2023 to 28.1% in 2025, maintaining a stable level of nearly three tenths. The logic behind this drastic change is clear and direct: Hgtech has fully embraced the wave of AI computing power infrastructure construction. With high-speed optical interconnection as its core foundation, the company fully supports the high-speed interconnection needs of mega AI centers and AI clusters, achieving large-scale deliveries of 800G silicon optical LPO series and 1.6T optical module products in the first echelon globally, and first launching a single-wave 400G optical engine for 3.2T. Starting from October 2025, 800G LPO optical modules have begun mass deliveries at overseas factories, with continued ramp-up expected in the fourth quarter. It is worth noting that intelligent manufacturing remains the core moat of Hgtech. The company holds over 90% of the domestic market share in laser welding equipment for automotive body-in-white, servicing over 45 million vehicles assembled, making it a true hidden champion in the industry. In terms of industry focus, orders from five major industries such as new energy vehicles and ships account for as high as 88%. The solid foundation of these traditional businesses provides solid support for the company's transformation into higher value-added tracks. Betting on the AI computing power track, a strategic shift in focus is expected It is believed that the evolution of Hgtech's business structure is essentially a strategic repositioning from "diversified optoelectronics" to "AI computing power core focus." Reflected in the data, the sales volume of Hgtech's AI computing power optical modules increased from about 168,000 units in 2023 to 1.312 million units in 2024, and then to 16.013 million units in 2025, achieving a nearly hundredfold growth in three years. This growth rate, in line with the corresponding revenue growth from 265 million yuan in 2023 to 2.661 billion yuan in 2025, further confirms the change in unit price - from about 1575 yuan per unit in 2023 to around 867 yuan per unit in 2024, and further down to around 166 yuan per unit in 2025. Behind the step-down in price tiers is the transition of product structure from early high-priced customized samples to standardized, large-scale shipments of 800G/1.6T modules, indicating that Hgtech has truly entered the "volume delivery phase" of the global AI data center supply chain. What is more noteworthy is the sales volume surpassing 16 million units in 2025, far exceeding the traditional telecom optical module shipment volume. Compared to the sales volume of telecom and satellite optical modules during the same period (approximately 12.81 million units), the AI computing power module has surpassed the traditional telecom modules comprehensively for the first time. This milestone turnaround marks Hgtech's complete transition from a "telecom infrastructure supplier" to a "core partner in AI computing power infrastructure." The sales data of sensor products are equally impressive: about 62.81 million units in 2023, about 70.03 million units in 2024, and about 69.09 million units in 2025. Although there was a slight decline in 2025, the overall annual shipment level remained close to 70 million units, indicating that products such as NTC temperature sensors and PTC heaters produced by Hgtech have formed an extremely stable stock market. The sales of the thermal management systems for new energy vehicles increased from about 12.66 million units in 2023 to about 14.66 million units in 2025, with a compound growth rate of about 7.6%, consistent with the pace of the increase in the penetration rate of domestic new energy vehicles. These two sets of data reveal an easily overlooked fact: although the revenue share of the intelligent perception business has been overtaken by optical interconnection, its absolute shipment volume still ranks first for the company. The annual shipment of nearly a billion sensors indicates that Hgtech has an unshakable global manufacturing advantage and scale barrier in the field of NTC temperature sensors, PTC heaters, and other specific areas. This "exchange quantity for market share" strategy provides a natural customer entry and cost advantage for the company in the promotion of upgrades in vehicle sensors (such as pressure sensors and gas sensors). Combining the above sales signals, the business evolution logic of Hgtech from 2023 to 2025 has become very clear: AI computing power optical modules are the absolute first growth curve. With the unit price dropping from the thousand-yuan level to the hundred-yuan level, it indicates that the company has completed the industrial capacity transition from "small batch trial production" to "million-level standardized mass production." The intelligent perception business plays a dual role of "cash cow + innovation incubator." Behind the stable growth in sales volume is the increase in unit price and optimization of product structure, which are typical characteristics of mature businesses. Intelligent manufacturing is undergoing "moderate growth in quantity" and "radical change in quality." If the micro-processing equipment indeed sees a tenfold increase, it means the company has found mass application scenarios for laser precision machining in fields such as new energy, 3C electronics, and semiconductors, which will be one of the most imaginative growth poles in the future. Standing at the dual wind of AI computing power and global data center infrastructure, Hgtech, with the explosive growth of optical modules, a solid foundation in intelligent perception, and technological accumulation in intelligent manufacturing, is attempting to open up new valuation space through an "A+H" layout. However, rapid decline in optical module prices, fluctuations in overseas supply chains, and intensifying industry competition are all hurdles that must be overcome. Going public in Hong Kong is not only a further capital supplement, but also a key step for the company to move from being a leading player in China to a global leader in the optoelectronics industry.