Summary of PCB Equipment and Materials Industry Conference Call Industry Overview - The PCB equipment and materials industry is experiencing sustained growth, with companies like Dingtai High-Tech, Zhongtung High-Tech, and Dazhu CNC showing significant performance improvements. It is expected that by 2026, Dazhu CNC's revenue will reach 1.7 to 2 billion RMB, while Dingtai High-Tech is projected to exceed 1 billion RMB [1][2] - The industry is in an accelerated growth phase, particularly benefiting from the rising demand for AI-related equipment and materials since 2025 [2] Key Company Performances - **Dazhu CNC**: Achieved a year-on-year growth rate of 2.5 times in Q4 2025, with a quarter-on-quarter growth of 50%. The company is expected to continue this trend into 2026 [3] - **Dingtai High-Tech**: Reported a year-on-year growth of 1.8 times and a quarter-on-quarter growth of 25%. The company is also expected to benefit from price increases and product structure optimization [3][11] - **Zhongtung High-Tech**: Plans to expand production capacity by adding 60 million AI transfer needles, with total capacity reaching 200 million units. The demand for materials has exceeded expectations, prompting a significant acceleration in production [13][14] Technological Advancements - The PCB industry is set to expand with the application of new technologies, such as RUBIN ULTRA materials, which are changing mechanical and laser processing methods. The demand for diamond drill bits and ultrafast laser technology is increasing [5] - **Ultrafast Laser Technology**: This technology is gaining traction due to its advantages in new material systems. Dazhu CNC has begun applying this technology and has seen positive results, while Inno Laser has received its first orders [6][9] Investment Opportunities - The current phase is considered the best time to invest in PCB equipment and materials companies, as the industry cycle is on an upward trajectory. Investors are encouraged to focus on emerging companies with technological advantages, such as Dazhu CNC and Inno Laser [7][8] - The ultrafast laser market is expected to grow significantly, with market space estimated at 7 to 8 billion RMB. Although this is smaller than the mechanical drilling market, it represents a substantial growth opportunity [9] Future Trends - The PCB industry is expected to continue expanding, with new technologies and processes accelerating their application. The shift towards ultrafast laser technology is becoming mainstream, with domestic manufacturers positioned to benefit [5][6] - Companies like Dazhu CNC and Keg have shown new growth opportunities, while Dingtai and Zhongtung are responding quickly to market demands through expansion and pricing strategies [15]

Group 1 - The A-share market for non-ferrous metals continues to strengthen, with zinc companies reaching a limit-up, and several other companies like China Uranium, Hunan Silver, and Jiangxi Copper seeing significant gains [1] - Gold, silver, copper, and tin have all reached historical highs simultaneously, indicating strong investor interest and concerns over geopolitical tensions in regions like Venezuela and Iran [1] - Analysts suggest that investors are reassessing asset allocations in light of reshaped geopolitical and trade dynamics, with further upside potential for gold and silver prices [1] Group 2 - Specific stock performance includes: - Zinc Industry Co. (涨幅 8.28%, 总市值 84.50 billion, 年初至今涨幅 27.87%) - China Uranium (涨幅 7.32%, 总市值 155.6 billion, 年初至今涨幅 23.49%) - Hunan Silver (涨幅 7.02%, 总市值 31.8 billion, 年初至今涨幅 63.01%) - Jiangxi Copper (涨幅 6.50%, 总市值 228.6 billion, 年初至今涨幅 20.23%) - Xiamen Tungsten (涨幅 5.95%, 总市值 87.3 billion, 年初至今涨幅 33.97%) [2] - Other notable performers include Yunlu Co. (涨幅 4.70%, 总市值 13 billion, 年初至今涨幅 11.82%) and Western Mining (涨幅 4.49%, 总市值 76.5 billion, 年初至今涨幅 16.21%) [2]

Core Viewpoint - The A-share market is experiencing a strong performance in the non-ferrous metal sector, with multiple companies reaching historical highs, driven by rising prices of gold, silver, copper, and tin amid geopolitical tensions [1] Group 1: Market Performance - Zinc Industry Co. saw a peak increase of 8.28%, with a total market value of 8.45 billion [2] - China Uranium Industry rose by 7.32%, with a market capitalization of 155.6 billion [2] - Hunan Silver increased by 7.02%, with a market value of 31.8 billion [2] - Jiangxi Copper surged by 6.50%, reaching a market cap of 228.6 billion [2] - Xiamen Tungsten climbed by 5.95%, with a total market value of 87.3 billion [2] - Yunlu Co. and Western Mining both increased by over 4%, with market values of 13 billion and 76.5 billion respectively [2] Group 2: Metal Prices and Investor Sentiment - Gold, silver, copper, and tin have all reached historical highs, indicating strong investor interest [1] - Analysts suggest that concerns over geopolitical tensions, particularly in Venezuela and Iran, are prompting investors to reassess asset allocations [1] - There is potential for further increases in gold and silver prices as the market reacts to changing geopolitical and trade dynamics [1]

Company Performance - Zhongtung High-tech's stock price has reached a historical high, with the stock price increasing continuously and hitting new highs on 10 trading days in the past month [2] - As of 09:31, the stock is up 1.23%, priced at 37.18 yuan, with a trading volume of 5.0564 million shares and a transaction amount of 186 million yuan [2] - The latest total market capitalization of the stock is 84.719 billion yuan, and the circulating market capitalization is 53.702 billion yuan [2] - The company's Q3 report shows a total operating income of 12.755 billion yuan for the first three quarters, a year-on-year increase of 13.39%, and a net profit of 846 million yuan, a year-on-year increase of 18.26% [2] - The basic earnings per share is 0.3821 yuan, and the weighted average return on equity is 9.51% [2] Industry Overview - The non-ferrous metals industry, to which Zhongtung High-tech belongs, has an overall increase of 0.84%, with 115 stocks rising, including Tianli Composite, Hunan Silver, and Yunnan Zinc, which have increased by 8.43%, 5.31%, and 4.27% respectively [2] - Conversely, 23 stocks in the industry have declined, with New Weiling, Huaxi Nonferrous, and Shengtun Mining showing declines of 2.95%, 2.06%, and 1.55% respectively [2] Financing Data - The latest margin trading balance for Zhongtung High-tech as of January 15 is 1.938 billion yuan, with a financing balance of 1.931 billion yuan, reflecting an increase of 606 million yuan over the past 10 days, a month-on-month growth of 45.74% [2]

Core Viewpoint - The Shenzhen State-owned Enterprise ESG Index (970055) closed at 1472.43 points, up 0.27%, with a trading volume of 49.598 billion yuan and a turnover rate of 1.79% [1] Group 1: Index Performance - On the day, 23 constituent stocks rose, with Zhongtung High-tech leading with a 5.52% increase, while 25 stocks fell, with Taisen Wind Power leading the decline at 6.2% [1] - The index's constituent stocks experienced a net outflow of 1.149 billion yuan from major funds, while retail investors saw a net inflow of 1.065 billion yuan [1] Group 2: Top Constituents - The top ten constituents of the Shenzhen State-owned Enterprise ESG Index include: - Hikvision (sz002415) with a weight of 9.57%, latest price at 31.29 yuan, down 0.45% [1] - Wuliangye (sz000858) with a weight of 9.23%, latest price at 106.09 yuan, down 0.89% [1] - Xugong Machinery (sz000425) with a weight of 8.83%, latest price at 11.12 yuan, up 0.54% [1] - Weichai Power (sz000338) with a weight of 7.59%, latest price at 20.20 yuan, up 4.18% [1] - Luzhou Laojiao (sz000568) with a weight of 7.52%, latest price at 115.36 yuan, down 1.28% [1] - Yun Aluminum (sz000807) with a weight of 5.93%, latest price at 33.16 yuan, up 1.44% [1] - Inspur Information (sz000977) with a weight of 5.93%, latest price at 68.13 yuan, down 2.04% [1] - AVIC Optoelectronics (sz002179) with a weight of 3.53%, latest price at 36.77 yuan, down 3.44% [1] - Yanghe Distillery (sz002304) with a weight of 3.17%, latest price at 62.95 yuan, down 0.55% [1] - Guangxun Technology (sz002281) with a weight of 2.96%, latest price at 78.50 yuan, up 1.79% [1] Group 3: Fund Flow Details - Major funds saw significant inflows in stocks such as: - Deep Technology (000021) with a net inflow of 503 million yuan [2] - Weichai Power (000338) with a net inflow of 1.12 million yuan [2] - Zhongtung High-tech (000657) with a net inflow of 95.263 million yuan [2] - Conversely, stocks like Yun Aluminum (000807) and Xugong Machinery (000425) experienced net outflows from major funds [2]

Core Viewpoint - The non-ferrous metal sector has seen significant interest today, particularly in tungsten-related stocks, which have become the focus of market attention. Group 1: Tungsten-Related Companies - Xianglu Tungsten Industry (002842.SZ) has a latest stock price of 19.14 CNY with a daily increase of +10.00%. It is one of the few companies in the domestic tungsten industry with a complete industrial chain, covering tungsten ore mining, smelting, and deep processing of all product lines [1]. - Zhongtung High-tech (000657.SZ) has a latest stock price of 36.73 CNY with a daily increase of +5.52%. It serves as the operational management platform for the tungsten industry under China Minmetals Corporation, encompassing the entire industrial chain from mining to smelting and alloys [1]. - Zhangyuan Tungsten Industry (002378.SZ) has a latest stock price of 18.19 CNY with a daily increase of +4.84%. It is also one of the domestic companies with complete tungsten industrial chain production capabilities, owning multiple mining rights and exploration areas [2]. - Zhongjin Lingnan (000060.SZ) has a latest stock price of 6.86 CNY with a daily increase of +4.41%. It is an integrated enterprise in the deep processing of non-ferrous metals [3]. - Zhongxiyou Color (600259.SH) has a latest stock price of 74.70 CNY with a daily increase of +4.04%. It is the core listed platform of China Rare Earth Group, with a rich resource of tungsten mines and a horizontal layout in "rare earth, copper, tungsten" industries [4]. - Jiangxi Copper (600362.SH) has a latest stock price of 62.00 CNY with a daily increase of +3.68%. Its Kazakhstan Bakuta tungsten mine project has successfully commenced production [5]. - Luoyang Molybdenum (603993.SH) has a latest stock price of 24.05 CNY with a daily increase of +3.22%. It is a global leader in the production of copper, cobalt, molybdenum, and tungsten, operating molybdenum and tungsten mines in China [6][7]. - Xiamen Tungsten Industry (600549.SH) has a latest stock price of 51.92 CNY with a daily increase of +2.85%. It possesses a complete tungsten industrial chain and has a competitive advantage in tungsten mining, smelting, and deep processing [9]. Group 2: Other Companies in the Sector - Greeenme (002340.SZ) has a latest stock price of 8.94 CNY with a daily increase of +2.88%. It is a leader in the recycling of critical metals [8].

Group 1 - The small metal sector increased by 2.08% on January 15, with Xianglu Tungsten leading the gains [1] - The Shanghai Composite Index closed at 4112.6, down 0.33%, while the Shenzhen Component Index closed at 14306.73, up 0.41% [1] - Key stocks in the small metal sector showed significant price increases, with Xianglu Tungsten rising by 10.00% to a closing price of 19.14 [1] Group 2 - The small metal sector experienced a net inflow of 1.182 billion yuan from main funds, while retail investors saw a net outflow of 571 million yuan [2] - Notable stocks with significant main fund inflows included Northern Rare Earth with 361 million yuan and Xiamen Tungsten with 157 million yuan [3] - Retail investors showed a negative trend in several stocks, including Xianglu Tungsten, which had a net outflow of 8771 million yuan from retail investors [3]

Overall Market Performance - The Shanghai Composite Index experienced a pullback, declining by 0.31% after approaching the 4200-point mark during the session, with trading volume in the three markets reaching a record high of nearly 4 trillion yuan [3] Sector Performance - Benefiting from the surge in commodity prices, several sectors saw a wave of limit-up stocks, including Xianglu Tungsten Industry, Huaxi Nonferrous, and Xiamen Tungsten Industry, all reaching historical highs. Tungsten powder prices exceeded 1.1 million yuan per ton, while tungsten concentrate rose to 464,000 yuan per standard ton. The main contract for Shanghai tin futures surged by 7%, setting a new historical high, which boosted the sector [4] - The quantum technology sector gained momentum due to policy support during the 14th Five-Year Plan, with stocks like Demei Chemical and Keda Guokuan hitting the limit-up. Conversely, the commercial aerospace sector faced significant adjustments due to substantial prior gains and risk warnings from several major stocks [4] Market Outlook - The Shanghai and Shenzhen stock exchanges announced an increase in the minimum margin ratio for financing from 80% to 100%, aimed at reducing market leverage and promoting long-term stability. This adjustment is seen as a mild measure compared to the drastic increase from 50% to 100% in 2015. The regulatory intent is clear: to avoid a "crazy bull" market and instead foster a "slow bull" market. The market adjustment is primarily attributed to profit-taking, with a notable shift in capital allocation. The index is expected to enter a phase of consolidation, while structural opportunities may continue [6]

Group 1 - The core viewpoint of the news is that Zhongtung High-tech has seen a significant increase in its stock price, rising by 5.07% to 35.25 CNY per share, with a trading volume of 759 million CNY and a market capitalization of 80.32 billion CNY as of January 14 [1] - Zhongtung High-tech Materials Co., Ltd. is located in Zhuzhou City, Hunan Province, and was established on March 18, 1993, with its listing date on December 5, 1996. The company specializes in the research, development, production, sales, and trade of hard alloys and rare metals such as tungsten, molybdenum, tantalum, and niobium [1] - The main business revenue composition of Zhongtung High-tech includes: 34.74% from ore and powder products, 23.13% from other hard alloys, 21.68% from cutting tools and instruments, 16.23% from refractory metals, and 4.22% from trade and equipment [1] Group 2 - From the perspective of fund holdings, one fund under AVIC Fund has a significant position in Zhongtung High-tech. The AVIC Mixed Reform Selected A Fund (004936) held 134,700 shares in the third quarter, accounting for 9.34% of the fund's net value, making it the fifth-largest holding [2] - The AVIC Mixed Reform Selected A Fund (004936) was established on December 14, 2017, with a latest scale of 4.8472 million CNY. Year-to-date, it has achieved a return of 8.09%, ranking 1146 out of 8838 in its category; over the past year, it has returned 30.98%, ranking 4436 out of 8089; and since inception, it has returned 6.11% [2] - The fund manager of AVIC Mixed Reform Selected A Fund is Fang Cen, who has been in the position for 2 years and 292 days. The total asset scale of the fund is 26.8561 million CNY, with the best return during his tenure being 11.16% and the worst being -13.43% [3]

Investment Rating - The report maintains a "Recommended" rating for the mechanical industry, with a focus on AI equipment and consumables, as well as engineering machinery [1]. Core Insights - The mechanical industry is expected to benefit from the acceleration of AI applications, particularly in high-performance servers and GPU demand, driven by the rapid iteration of AI models and smart hardware [7]. - The excavator market is projected to exceed expectations in both domestic and international sales, with a forecasted 17% year-on-year growth in 2025, supported by government policies and infrastructure projects [7]. - The report emphasizes the potential for a new recovery cycle in the equipment industry, driven by monetary and fiscal policy support, and suggests focusing on key companies across various segments [7]. Summary by Sections Key Company Earnings Forecast, Valuation, and Investment Ratings - Companies such as 汇川技术 (Inovance Technology), 法兰泰克 (Falan Tech), and 信捷电气 (Xinjie Electric) are rated as "Strong Buy" with projected EPS growth and favorable PE ratios [2][8]. - For example, 汇川技术 is expected to have an EPS of 2.11元 in 2025, with a PE ratio of 37.13, indicating strong growth potential [2]. Industry and Company Investment Views - The report highlights the AI equipment and consumables sector as a key area for investment, with significant growth expected in the PCB market driven by AI infrastructure needs [9]. - The engineering machinery sector is also highlighted, with companies like 三一重工 (Sany Heavy Industry) and 徐工机械 (XCMG) expected to benefit from increased domestic demand and international market recovery [7][9]. Key Data Tracking - The report provides macroeconomic data indicating a total market capitalization of 70,956.73 billion yuan for the mechanical industry, with 636 listed companies [4]. - The mechanical sector has shown strong performance, with a 5.7% increase in the sector index over the past week, outperforming major indices [11][14].