BOE Technology (000725 CH) Upgrade to Buy: Glass substrate breaks through valuation upper limit

Research evidence excerpt

BOE Technology (000725 CH) Upgrade to Buy: Glass substrate breaks through valuation upper limit

7 July 2026

Equity Research Report

BOE Technology (000725 CH) EquitiesElectronic Equipment &

Instruments

Upgrade to Buy: Glass substrate breaks through

valuation upper limit China

◆ Business penetrating into semiconductor industry with a

UPGRADE TO BUY

strategic plan in glass substrate, Perovskite …

◆ …and optical interconnects, despite unfavourable seasonality TARGET PRICE (CNY) PREVIOUS TARGET (CNY)

of panel in 2H26 10.70 4.60

◆ Upgrade to Buy from Hold; revise estimates and increase SHARE PRICE (CNY) UPSIDE/DOWNSIDE

target price to RMB10.70 from RMB4.60 8.38 +27.7%

(as of 03 Jul 2026)

More than a pure panel player: We believe BOE deserves a higher valuation, given its

move into the advanced packaging industry, which helps it insulate itself from the overall MARKET DATA

Market cap (CNYm) 304,625 Free float 97%

panel weakness and has not been fully priced in by the 106% share price rally (CSI300 Market cap (USDm) 44,927 BBG 000725 CH

Index up 2% over the same period), after its announcement of signing an MoU with 3m ADTV (USDm) 2,033 RIC 000725.SZ

Coring on glass-based packaging substrates on 20 May. We estimate a glass substrate

TAM of USD11.3bn by 2032e and think substrate processing is the key value-added step, FINANCIALS AND RATIOS (CNY)

generating c70% of the profit (see Glass substrate: New material, new winners, 6 July Year to 12/2025a 12/2026e 12/2027e 12/2028e

HSBC QH EPS 0.17 0.24 0.32 0.40

2026). We view BOE as the key beneficiary, given its technology know-how in the HSBC QH EPS prev 0.21 0.31 0.39 NA

entire process flow with a faster ramp schedule than peers. Change (%) -18.9 -21.5 -17.4 NA

Consensus EPS 0.17 0.22 0.32 0.39