China Technology Glass substrate: New material, new winners

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China Technology Glass substrate: New material, new winners

Equities ● Electronic Equipment &Instruments

7 July 2026

Valuation and risks

Valuation Risks

Current price: We forecast a 2026-28e net profit CAGR of 37%. Applying the A-share Key downside risks

Han’s Laser

RMB129.64 laser equipment sector average PEG of 1.2x implies a target PE of 44x. ◆ Lower order demand for PCB equipment. 002008 CH Based on our 2027e diluted EPS of RMB3.79, we arrive at our target price ◆ Consumer electronics demand impacted by tariffs. Target price:

to RMB167.00. Our target price implies c29% upside from current levels, ◆ Higher-than-expected operating expenses driven RMB167.00

we retain our Buy rating. Key catalysts include: 1) the launch of a foldable by new business expansion.

Buy Up/downside: iPhone in 2H26e; 2) mass validation of titanium alloy 3D printing for

29% consumer electronic structures; and 3) accelerated domestic substitution of

PCD equipment.

Bingyi Zheng* (S1700521060001) | bingyi.zheng@hsbcqh.com.cn | +86 21 5066 2028

Current price: We use a target PB of 2.6x to value the stock, in line with company’s Key downside risksBOE

RMB8.38 peer’s 2027e average PB. Applying this multiple to our 12-month forward ◆ Worse-than-expected effect of China’s subsidy Technology

BVPS of RMB4.00, we derive our target price of RMB10.70. Our target stimulus. 000725 CH Target price: price implies c28% upside, and we maintain our Buy rating. We believe ◆ Slower-than-expected end-market demand recovery. RMB10.70

glass core substrate, which the company is working on, will be a key ◆ Slower-than-expected commercialization of glass

Up/downside: component in next-generation advanced packaging. packaging substrates.

Buy 28%

Current price: We value the stock using a price-to-sales (PS) multiple.