Shenwan Hongyuan: Maintains "Overweight" rating on TSTC, equity incentives significantly boost market confidence

Shenwan Hongyuan's research report points out that the high incentive targets reflect confidence in the growth of TSTC. It believes that the company's high net profit targets for 2025-2027 somewhat reflect its confidence in future growth. The company has accelerated its layout in multiple new material businesses in recent years, which may show a trend of "accumulating strength before a breakthrough." Capital expenditures have increased year by year, and the scale of ongoing projects is gradually accumulating. If the previously accumulated projects are gradually put into production, they are expected to contribute new performance growth points for the company, helping it achieve its incentive targets. The company is fully promoting the research and development process of UTG one-time molding technology and accelerating the iterative development of application technologies such as UFG, 3A coating technology, and microcrystalline glass processing. In terms of application materials: the 6000t/a spherical powder material project for electronic packaging has completed the installation of two production lines. The progress of research and manufacturing in multiple new businesses is smooth, and the equity incentives significantly boost market confidence. Maintain "Overweight" rating