Company and Industry Summary Company: Ta Liang Key Points - **Upgrade of Communication Protocol**: The upcoming NVIDIA Rubin platform will feature an upgraded communication protocol between GPU and NVSwitch, utilizing 224GSerDes on PCB with a significant signal frequency increase to a maximum of 56GHz, compared to 28GHz on the Blackwell platform. This upgrade indicates that even minor via stubs can lead to severe signal degradation, establishing a ±2mil stub height as the threshold for signal transmission quality. Accurate closed-loop measurement is deemed crucial for manufacturing quality control [1][1][1] - **StubMapper Device**: Ta Liang has developed a proprietary device called StubMapper, which enables ±2mil depth measurement to guide subsequent back-drilling processes executed by Ta Liang's 6-axis CCD drilling machine. StubMapper can provide profile measurement data back to the back-drilling machine, enhancing precision in manufacturing [1][1][1] - **Increased Demand for Back-Drilling**: There has been a surge in industry demand for back-drilling to meet the requirements of high-end AI PCBs, resulting in an extension of PCB equipment delivery cycles from 1.5 months to over 3 months. This demand has led Ta Liang to consider outsourcing more low-end drilling tool production to focus on high-end tool manufacturing [2][2][2] - **Production Capacity and Future Plans**: Ta Liang's current monthly production capacity is approximately 300 sets of drilling tools. The company plans to enhance the throughput of StubMapper by introducing a four-probe version, with mass production scheduled for March 2026, and initial customer reservations already in place [2][2][2] - **Semiconductor Equipment Division**: Ta Liang also operates a semiconductor equipment division focused on measurement and automated optical inspection (AOI), offering 7 types of inspection equipment used in processes such as HBM incoming material and flip-chip bonding. This division has received certification from a leading foundry for CoWoS and SoIC platforms, with CoWoS-related revenue accounting for approximately 75% of its semiconductor equipment business [2][2][2] - **Milestone Achievement**: The certification from the leading foundry is considered a key milestone for Ta Liang, facilitating smoother entry into the OSAT supply chain as OSAT manufacturers expand their 2.5D capacity [2][2][2]

Summary of Han's CNC Technology Conference Call Company Overview - **Company Name**: Han's CNC Technology - **Ticker Symbols**: 3200.HK (H-share), 301200.SZ (A-share) - **Industry**: PCB (Printed Circuit Board) Equipment Manufacturing - **Market Position**: Leading PCB drilling equipment maker in China with a global market share of 6.6% in 2024, potentially reaching 10-11% [35][39] Core Insights - **Earnings Forecasts**: - 2025E earnings revised up by 18% and 2026E by 21% due to stronger-than-expected preliminary results for 2025 [1] - Target price for A-shares raised by approximately 14% to Rmb160, while H-shares initiated at Buy with a target price of HK$142 [1][41] - **Market Demand**: - Anticipated growth in AI PCB equipment revenue by 134% YoY to Rmb4.0 billion in 2026E and 72% YoY to Rmb6.9 billion in 2027E [1] - Global AI PCB Total Addressable Market (TAM) expected to increase by 101% YoY to Rmb96.3 billion in 2026E and 81% YoY to Rmb174.1 billion in 2027E [1] - **Market Share**: - Han's CNC's market share in AI PCB equipment projected to be 19% in 2026E and 20% in 2027E [1] Equipment Insights - **Ultrafast Laser Drilling Equipment**: - Currently used by Chinese PCB makers for mSAP PCBs but has not passed certification for HDI in AI servers [2] - Higher average selling price (ASP) of Rmb5 million-6 million compared to Rmb3 million for CO2 laser drilling raises concerns about client retention [2] Financial Metrics - **Revenue and Profit Projections**: - Revenue expected to grow from Rmb5.706 billion in 2025E to Rmb8.902 billion in 2026E, with net profit projected to rise from Rmb829 million to Rmb1.424 billion [18] - Gross profit margin (GPM) expected to stabilize around 34% in 2026E [18] Risks and Considerations - **Investment Risks**: - Rated as High Risk due to potential volatility in share price, but mitigated by strong earnings visibility from AI PCB demand [38] - Downside risks include weaker-than-expected demand, rising component costs affecting GPM, and increased price competition [38][43] - Upside risks include stronger demand and favorable product mix changes [38] Valuation - **Target Price Justification**: - Target price of Rmb160 for A-shares and HK$142 for H-shares based on a P/E ratio of approximately 53x for 2026E, reflecting a 55% earnings CAGR for 2026E-27E [37][42] Conclusion - Han's CNC Technology is positioned to benefit from the growing demand for AI PCB equipment, with strong earnings growth anticipated. However, investors should remain cautious of potential risks that could impact performance and valuation.

Flash | 09 Feb 2026 01:12:42 ET │ 11 pages China Automation and Machinery Weekly Highlights: Positive Data Points for Construction Machinery and AI PCB Equipment CITI'S TAKE Construction machinery: According to CCMA (China Construction Machinery Association), China domestic excavator shipment/export volume increased by 61%/40% YoY in Jan-26, which we believe could be due to the CNY-led low base in Jan-25. China's tower crane leasing rate index, published by Pangyuan, declined by 6% WoW last week as we are a ...

Investment Rating - The report rates the PCB drill needle industry as "Overweight" indicating a positive outlook for the sector [3]. Core Insights - The demand for AI PCB drill needles is expected to surge due to accelerated capital expenditure in AI computing and advancements in PCB materials, leading to increased prices and volumes [3]. - Major players like DingTai High-Tech and ZhongTung High-Tech are positioned to benefit significantly from the demand explosion driven by technological upgrades and market dynamics [3]. - The report highlights the strategic acquisitions and expansions by companies such as MinBiao Optoelectronics and XiaZhi Precision, which are enhancing their production capabilities and market presence [3]. Summary by Relevant Sections Industry Overview - The report discusses the acquisition of 49% and 51% stakes in XiaZhi Precision by MinBiao Optoelectronics, aiming for full control to enhance its capabilities in PCB, FPC, and AI PCB drill needle production [1]. - The report emphasizes the increasing complexity in PCB manufacturing, particularly with the introduction of new materials like M9, which raises the demand for high-performance drill needles [3]. Key Companies - **DingTai High-Tech**: Leads global PCB drill needle sales with a market share of 28.9%, benefiting from scale effects and self-manufactured equipment [3]. - **ZhongTung High-Tech**: Focuses on high-end products, with plans to increase production capacity significantly in the coming years [3]. - **Wald**: Making advancements in diamond micro-drill technology for PCB and semiconductor applications, with a strong focus on thermal management solutions [3]. - **XiaZhi Precision**: Established in 1995, the company has a strong technical foundation and is planning to expand its production capacity to meet growing demand [3]. Financial Projections - The report includes a valuation table for key companies, projecting significant growth in net profits and market capitalization from 2024 to 2027 for DingTai High-Tech and ZhongTung High-Tech [4].

Summary of Delton (001389.SZ) Conference Call Company Overview - **Company**: Delton (001389.SZ) - **Industry**: PCB (Printed Circuit Board) - **Focus Areas**: Data centers, cloud computing, 5G communication, automotive, AI Key Points 1. Capacity Expansion - Delton is committed to expanding its capacity in mainland China and Thailand - The third factory in Guangzhou began construction in August 2025, focusing on Multi-layer PCB (MLPCB) and HDI, with mass production expected in Q4 2026 and revenue contributions in 2027 [3] - The Thailand factory started mass production in June 2025, projected to turn profitable by December 2025, and aims to fully ramp up phase 1 by the end of 2026, with the second stage contributing revenues in 2027 [3] 2. General Servers Outlook - Delton is a leading PCB supplier for general servers, serving major server brands and ODMs globally - General servers are currently the major revenue contributor, with an expected increase in AI PCB contributions - Global shipments of general servers are typically 3-5% YoY, but Delton anticipates double-digit shipment growth in 2026 due to strong orders and specification upgrades (e.g., from PCIE 5.0 to 6.0) [4] 3. AI Servers Outlook - Management is optimistic about expanding into AI servers, with the gross margin for AI server PCBs projected to be 5-6 percentage points higher than that for general servers - Delton aims to leverage its experience with Taiwan ODMs to penetrate the AI server PCB market, targeting leading US cloud service providers [8] 4. Market Growth Projections - The global AI server PCB total addressable market (TAM) is expected to grow at a 140% CAGR from 2025 to 2027, reaching approximately US$27 billion by 2027 [1] - This growth is driven by strong demand for high-end AI servers, PCB specification upgrades, and increased capital expenditure for accelerated expansion [1] Additional Insights - Delton's strategy includes enhancing its product mix to improve blended gross margins, indicating a focus on higher-value products in the AI segment [8] - The company is positioning itself to capture rising demand in the AI PCB market, which is becoming increasingly significant in the overall PCB landscape [2]

Group 1 - The core viewpoint of the news is that 40 stocks were listed on the institutional leaderboard today, with 23 stocks experiencing net buying and 17 stocks facing net selling [1] - The top three stocks with the highest net buying by institutions are: Zhongtung High-tech (3.05 billion), Dazhu CNC (2.79 billion), and ST Jiaao (240 million) [1] - Dazhu CNC saw a net buying of 2.79 billion from five institutions, and the stock price increased by 20% [2][3] Group 2 - Resonac, a well-known Japanese materials manufacturer, announced a price increase of over 30% for PCB materials such as copper foil substrates and adhesive films due to tight supply and significant price hikes [3] - The company is actively collaborating with industry-leading clients to develop cutting-edge technology solutions for AI PCB, focusing on high precision and complex structures [3] - TSMC's new advanced packaging line at the Jiayi AP7 factory is expected to double its capacity to 60,000 pieces per month by 2026, with plans to double again by 2027 [3]

Summary of Conference Call Notes Industry Overview: PCB Equipment Key Points - **Expansion Plans**: - Pengding plans to invest 4.3 billion yuan in expansion, focusing on HDI and HLC products aimed at AI servers, AI edge devices, and low-orbit satellites. The project is expected to be completed by the end of 2026, with PCB equipment orders anticipated to materialize within the same year [1][1][1] - **Technological Advancements**: - Huadian Co. is investing in a high-density optoelectronic integrated circuit board project in Jintan District, Changzhou, with a total investment of 300 million USD (phased into two parts). This initiative aims to establish platforms for cutting-edge technologies like CoWoP and advanced processes such as mSAP, focusing on next-generation technology directions like copper-light integration [1][1][1] Market Dynamics - **Accelerated Expansion and Technological Iteration**: - Leading PCB manufacturers are rapidly expanding, particularly in the AI PCB sector. Equipment manufacturers are expected to benefit significantly from this expansion wave, while material suppliers may see improvements in product structure due to the increasing layers in AI PCBs [2][2][2] - **High-End PCB Upgrades**: - Continuous advancements in chip technology are driving the upgrade of PCBs towards high-end applications, characterized by smaller aperture sizes and narrower line widths. Advanced packaging processes like CoWoP and micro-aperture/line-width processing techniques such as mSAP are expected to propel the development of high-end equipment, leading to increased demand for high-resolution LDI equipment and ultra-fast laser drilling [2][2][2] Investment Recommendations - **Focus Areas**: - It is recommended to pay attention to companies involved in the PCB drilling segment, such as Dazhu CNC, Zhongtung High-tech, and Dingtai High-tech, as well as those in the LDI segment like Chip Quik [2][2][2] Risk Factors - **Potential Risks**: - Macro-economic risks and the possibility of technology development falling short of expectations are highlighted as significant risk factors [2][2][2]

Summary of Company and Industry Insights Company: 东威科技 (Dongwei Technology) Key Financial Projections - The company forecasts a net profit attributable to shareholders of 120-140 million yuan for 2025, representing a year-on-year growth of 73.23%-102.10% [1] - The non-recurring net profit is expected to be 116-136 million yuan, with a year-on-year increase of 88.09%-120.63% [1] - For Q4 2025, the estimated net profit attributable to shareholders is projected to be 35-55 million yuan, compared to 1 million yuan in the same period of 2024 [1] Operational Highlights - In 2025, the company anticipates delivering over 200 VCP units, marking a historical high, with order intake also reaching a record high [1] - The overseas sales proportion is expected to exceed 20% [1] - The company is experiencing increased costs due to factory expansion, and some equipment delivery timelines have been extended, leading to higher actual production levels [1] Industry Dynamics - The current high demand for PCB equipment is driven by several factors, including overseas expansion, AIPCB, and equipment upgrades [1] - The investment boom in Southeast Asia, AI demand, and equipment upgrades from domestic clients are collectively boosting industry demand [1] Industry Insights High-End Product Developments - There is a continuous increase in procurement customers for high-end products, specifically in horizontal plating three-in-one technology [2] - Technologies such as horizontal plating, magnetron sputtering are being utilized in the production of HVLP5 copper foil, PI electronic copper foil, display copper foil, and shielding materials [2]

Investment Rating - The report maintains a "Buy" rating for Shenghong Technology (300476.SZ) [2][3] Core Views - Shenghong Technology is expected to achieve a net profit attributable to shareholders of approximately 4.16 to 4.56 billion yuan for the year 2025, representing a year-on-year growth of 260.35% to 295.00% [2] - The company is actively expanding its production capacity and is set to launch new materials, which is anticipated to drive significant revenue growth [2] - The company has established itself as a leader in the HDI (High-Density Interconnect) technology sector, with plans to advance to 10-layer 30-layer HDI product development [2] - Shenghong Technology's revenue is projected to reach 35.8 billion yuan in 2026 and 57.5 billion yuan in 2027, with net profits expected to be 10.5 billion yuan and 18.0 billion yuan respectively [2] Financial Summary - Revenue for 2023 is reported at 7.93 billion yuan, with projections of 10.73 billion yuan for 2024, 19.98 billion yuan for 2025, 35.80 billion yuan for 2026, and 57.54 billion yuan for 2027 [7] - The net profit attributable to shareholders is forecasted to grow from 671 million yuan in 2023 to 18.04 billion yuan in 2027, with significant year-on-year growth rates [7] - The latest diluted EPS is expected to increase from 0.77 yuan in 2023 to 20.73 yuan in 2027 [7] - The company’s return on equity (ROE) is projected to rise from 8.8% in 2023 to 47.8% in 2027 [7]

Core Viewpoint - CICC has initiated coverage on Jaxin International Resources (03858), focusing on its operations at the Bakuta tungsten mine in Kazakhstan, and has given it an "outperform" rating with a target price of HKD 95.00, based on a P/E valuation method corresponding to 22.6x and 14.8x P/E for 2026-2027 [2][10] Industry Overview - The global tungsten supply-demand balance is expected to remain tight, with tungsten prices likely to steadily increase. The supply side shows strong scarcity and high concentration, with China consistently holding the largest share of global tungsten production. Domestic supply is facing contraction pressures due to declining ore grades and stricter production regulations, while overseas tungsten mine development is generally slow. CICC forecasts a CAGR of +2.4% for global tungsten supply from 2023 to 2028. On the demand side, emerging needs from photovoltaic tungsten wire, AI PCBs, and large infrastructure projects are expected to boost domestic tungsten consumption. Additionally, ongoing geopolitical conflicts may trigger strategic stockpiling demand. CICC anticipates a CAGR of +2.7% for global tungsten consumption during the same period [3][11][12] Company Advantages - Jaxin International Resources possesses four core advantages that could establish it as a leading player in the mining sector in Central Asia. 1. **Good Resources**: The Bakuta tungsten mine has large reserves, low costs, and favorable conditions for large-scale development. 2. **Good Location**: The Bakuta project is strategically located with convenient transportation, benefiting from Kazakhstan's rich resources and favorable business environment, supported by the comprehensive strategic partnership between China and Kazakhstan and the Belt and Road Initiative. 3. **Good Mechanism**: The mixed ownership structure and management team are expected to empower the company. 4. **Good Growth**: The company shows strong growth potential in capacity expansion, deep processing, and resource replenishment, positioning it to become a leading non-ferrous company in Central Asia with global sales [4][13] Profit Forecast and Valuation - CICC projects the company's EPS for 2025-2027 to be HKD 0.63, HKD 4.18, and HKD 6.56, respectively, with a CAGR of 221.6%. The net profit attributable to the parent company is expected to be RMB 2.6 billion, RMB 17.2 billion, and RMB 26.3 billion for the same years. The current stock price corresponds to a P/E of 16.5x and 10.5x for 2026-2027. The initial coverage gives an "outperform" rating with a target price of HKD 95, indicating a potential upside of 38% [6][14]