BOE Technology (000725.SZ): Downgrade to Neutral as Glass Substrate Expectations Likely Priced In

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BOE Technology (000725.SZ): Downgrade to Neutral as Glass Substrate Expectations Likely Priced In

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07 Jul 2026 05:22:57 ET │ 16 pages

BOE Technology (000725.SZ)

Downgrade to Neutral as Glass Substrate Expectations Likely Priced In

CITI'S TAKE

We attended BOE’s investor day. BOE reiterated its position as the global

leader in displays while emphasizing that its next phase of growth will be

driven by the extension of its core capabilities into glass-based advanced Neutral ↓ from Buy

packaging, optical interconnect, perovskite photovoltaics, foldable glass, Price (06 Jul 26 15:00) Rmb7.760

etc. BOE anticipates reaching a definitive mass-production investment

decision by mid-2027. Its optical interconnect devices remain at a validation Target price Rmb8.700↑

stage and have not yet entered mass production, but BOE targets to launch from Rmb5.000

mature multi-channel product demos aligned with 1.6T, 3.2T and 6.4T Expected share priceindustry requirements in 2028. We downgrade BOE from Buy to Neutral 12.1%

with a new TP of Rmb8.7 (prev: Rmb5.0), as we believe current valuation has return

factored in an improving LCD biz and potential glass substrate contribution. Expected dividend yield 0.9%

Expected total return 13.0%

BOE’s second and third growth curves are increasingly material — Since launching Market Cap Rmb285,023Mits IoT transformation in 2021, BOE has achieved global No.1 shipment positions in

more than 20 sub-segments, including automotive display, commercial display and US$42,105M

public healthcare. Innovation business revenue is expected to reach Rmb60bn in

2026, representing around 30% of total revenue and becoming a major growth pillar,

according to mgmt. The third-curve incubation portfolio includes perovskite