Group 1 - The PCB sector experienced a significant surge on the 22nd, with notable stock increases such as Ding Tai Gao Ke rising nearly 18% and Guangxin Materials up over 10% [1] - The demand for printed circuit boards (PCBs) is expected to explode due to the acceleration of AI computing infrastructure construction, with a projected CAGR of 11.6% for server and storage PCBs from 2024 to 2029 according to Prismark and CITIC Securities [1] - High-layer boards, high-density interconnect (HDI) boards, and IC carrier boards are anticipated to see rapid growth in output value, with leading domestic PCB companies expected to invest 41.9 billion yuan from 2025 to 2026 [1] Group 2 - AI servers will have higher requirements for PCB usage, density, and performance, leading to increased precision demands in processes such as exposure, drilling, plating, and inspection [1] - Domestic PCB equipment manufacturers are expected to capitalize on the favorable conditions in the AI PCB market, accelerating the validation of emerging technologies and expanding their market share and value [1] - Companies focusing on AI PCB equipment, particularly in laser, vision, and inspection technologies, are recommended for investment consideration [1]

Core Viewpoint - The demand for printed circuit boards (PCBs) is surging due to the accelerated construction of AI computing power infrastructure, with significant growth expected in high-layer boards, high-density interconnect (HDI) boards, and IC substrates. Domestic manufacturers are actively expanding high-end capacity, and it is anticipated that domestic PCB equipment manufacturers will seize the AI PCB boom, validating emerging technologies and capturing incremental demand, leading to an increase in domestic market share and value enhancement [1]. Supply and Demand Trends - Structural demand for high-layer boards, HDI boards, and IC substrates is robust due to AI servers. The overall demand for AI PCBs is outpacing supply, with a projected compound annual growth rate (CAGR) of 11.6% for global market server/storage PCBs from 2024 to 2029, driven by AI demand. The planned output value for high-layer boards, HDI boards, and IC substrates is growing rapidly, with an estimated investment of 41.9 billion yuan from leading domestic AI PCB companies by 2025-2026 [1][2]. AI PCB Upgrades - The usage and specifications of PCBs are evolving due to AI servers. For instance, the configuration of Nvidia's NVL36 includes 36 GPUs, 18 CPUs, and 9 NVSwitches, with even higher usage in the NV72 model. The demand for high-layer and HDI PCBs is increasing, leading to higher requirements for wiring, copper plating, and blind/buried holes [2]. Beneficiaries in AI PCB Equipment - The increase in layers and precision in PCBs is benefiting exposure, drilling, electroplating, and inspection equipment. According to Prismark, the global market value shares for these equipment types are 17%, 21%, 7%, and 15%, respectively. The demand for more precise wiring is raising requirements for LDI equipment, while higher layer counts and complex HDI structures are increasing the need for micro-drilling and laser drilling technologies. The uniformity requirements for micro-hole filling are also rising, with expectations for VCP penetration rates to improve from 55% [3][4].

Investment Rating - The report maintains a "Positive" investment rating for the industry [3]. Core Insights - The report highlights the opportunity for domestic substitution in laser drilling technology for PCBs, driven by advancements in AI and the increasing complexity of PCB manufacturing [1][11]. - The global PCB laser drilling equipment market is projected to grow, with Asia dominating the market share due to strong manufacturing capabilities in countries like China, Japan, and South Korea [48][49]. Summary by Sections Section 1: PCB Expansion and Technology Iteration - The production process of different types of PCBs involves various key equipment, including drilling, exposure, plating, and lamination [8]. - The global scale distribution of PCB production equipment in 2024 is detailed, with significant investments in drilling and exposure equipment [9]. Section 2: Laser Drilling Technology - Laser drilling technology is categorized into CO2, UV, and ultrafast lasers, each with specific applications in PCB manufacturing [20][21]. - The penetration rate of laser drilling technology is expected to increase due to the rising demand for high precision and smaller hole sizes in PCBs [19][39]. - The report discusses the advantages of ultrafast laser drilling, including minimal thermal impact and high-quality hole production, which is crucial for high-frequency signal transmission [43]. Section 3: Market Dynamics - The global PCB laser drilling equipment market size was approximately $917 million in 2023, with CO2 laser drilling machines holding over 70% market share [48]. - The report emphasizes the leading position of international manufacturers in the laser drilling equipment market, while also highlighting the potential for domestic manufacturers to accelerate their market presence [51][52]. Section 4: Domestic Manufacturer Developments - Domestic companies like Dazhu CNC are expanding their product lines to cover various laser drilling technologies, indicating a shift towards local production capabilities [52][54]. - The report outlines the advancements and product offerings of several domestic manufacturers, showcasing their efforts to meet the growing demands of the PCB industry [53].

Investment Rating - The report assigns a "Buy" rating to the company [10] Core Views - The company is expected to benefit from the recovery of the PCB industry, along with the expansion of AI PCB production and new technology iterations, leading to simultaneous increases in volume, price, and profit [2][8] - As a leading PCB equipment manufacturer, the company has significant platform advantages, and its performance is anticipated to continue growing at a high rate [2][8] - The company aims to establish a comprehensive platform layout covering the entire production process of PCB equipment, from traditional rigid boards to high-end products like IC substrates and HDI [2][5] Summary by Sections Company Overview - The company has been a global leader in PCB equipment for over 20 years, focusing on the development, production, and sales of PCB specialized equipment [5][20] - Its product range includes drilling, exposure, forming, and testing equipment, covering all core production processes in PCB manufacturing [5][31] Market Dynamics - The global PCB market is entering a new recovery cycle, driven by structural growth momentum from AI technology innovations and the rapid growth of the electric vehicle market [49] - The demand for PCB specialized processing equipment is rebounding quickly due to the explosive demand for infrastructure in the AI industry and the recovery of the consumer electronics market [5][27] Financial Projections - The company is projected to achieve net profits of 580 million, 860 million, and 1.18 billion yuan from 2025 to 2027, corresponding to PE ratios of 69, 46, and 34 times [2][8] - In 2024, the company expects significant revenue growth, with a projected revenue of 3.343 billion yuan, a year-on-year increase of 104.56% [27] Product Matrix and Competitive Advantage - The company is building a collaborative product matrix across all production processes, enhancing its platform advantages [7][31] - Its core advantages include the synergy of technology platforms, comprehensive service capabilities, and breakthroughs in high-end markets [7][31] Customer Base and Sales Strategy - The company serves 80% of the top 100 global PCB companies and has a stable customer base, including well-known domestic and international manufacturers [36][37] - The sales model primarily involves direct sales, with some products sold through agents and distributors to enhance cooperation with foreign PCB manufacturers [38]

Market Performance - The Shanghai Composite Index closed at 3420.57 points, up 1.15%, with a trading volume of approximately 544.9 billion yuan [2] - The Shenzhen Component Index closed at 10217.63 points, up 1.68%, with a trading volume of approximately 869.7 billion yuan [2] - The ChiNext Index closed at 2064.13 points, up 2.30%, with a trading volume of approximately 441.7 billion yuan [2] - The STAR Market Index closed at 1198.12 points, up 2.07%, with a trading volume of approximately 103.1 billion yuan [2] - The North Star 50 Index closed at 1418.02 points, up 3.65%, with a trading volume of approximately 33.8 billion yuan [2] Sector Performance - The solid-state battery sector and humanoid robot sector led the gains, with significant increases in other sectors such as reducers, PEEK materials, integrated die-casting, tire pressure monitoring, automotive thermal management, composite copper foil, autonomous driving, high-speed charging, liquid cooling servers, power battery recycling, industrial mother machines, and cloud gaming [1] - Conversely, sectors such as oil and gas extraction, combustible ice, and port shipping experienced notable declines [1] Institutional Insights - Market activity is improving as it recovers from external geopolitical conflicts, with a focus on sectors expected to outperform due to upcoming mid-year earnings reports [3] - Key sectors to watch include high-end manufacturing, new energy, and technology that aligns with national strategic directions [3] - The securities industry is experiencing a trend of mergers and acquisitions, with a focus on strong leading brokerages and those enhancing core competitiveness through restructuring [3] Solid-State Battery Developments - Companies like Winbond Technology, Lead Intelligent, and Xingyun Co. have completed core equipment deliveries for solid-state batteries, significantly catalyzing the sector [4] - Investment in solid-state battery equipment ranges from 400 million to 500 million yuan per GWh, which is substantially higher than traditional liquid lithium battery equipment [4] - The push for semi-solid and fully solid production lines by battery manufacturers, along with policy support, is expected to enhance capital expenditure in the solid-state battery materials sector [4]

Group 1 - The Shanghai Stock Exchange Sci-Tech Innovation Board New Energy Index (000692) has seen a strong increase of 4.18%, with constituent stocks such as Liyuanheng (688499) rising by 20.01%, Huasheng Lithium Battery (688353) by 15.20%, and Zhenhua New Materials (688707) by 12.99% [1] - The Sci-Tech Innovation New Energy ETF (588830) increased by 4.04%, with the latest price reported at 1.08 yuan, indicating active market trading with a turnover rate of 17.07% and a transaction volume of 77.3467 million yuan [1] - Solid-state battery core equipment deliveries by companies like Winbond Technology, Xian Dao Intelligent, and Xingyun Co. have significantly catalyzed the sector [1] Group 2 - The Sci-Tech Innovation New Energy ETF closely tracks the Shanghai Stock Exchange Sci-Tech Innovation Board New Energy Index, which selects 50 large-cap stocks from the photovoltaic, wind power, and new energy vehicle sectors to reflect the overall performance of representative new energy companies [2] - As of May 30, 2025, the top ten weighted stocks in the index include JinkoSolar (688223), Trina Solar (688599), and Canadian Solar (688472), collectively accounting for 51.28% of the index [2]

Overall Viewpoints - Wind Power: The issuance of Document No. 136 reshapes the logic of new energy installations. Due to the favorable output curve of wind power, sales of wind power stations are expected to recover, and profits from wind turbine manufacturing are likely to improve. Focus should be on wind turbine manufacturers, with Q2 performance potentially under pressure, while monitoring the degree of profit improvement in Q3-Q4 and the progress of power station sales [4]. - Solid-State Batteries: Companies like Winbond Technology, Leading Intelligent, and Xingyun Co. have completed the delivery of core equipment for solid-state batteries, significantly catalyzing the sector. The investment in solid-state battery equipment is 400-500 million per GWh, significantly higher than traditional liquid lithium battery equipment, with comprehensive upgrades in equipment requirements. The solid-state battery sector is seeing increased capital expenditure driven by policy support and the active promotion of semi-solid and all-solid experimental lines by battery manufacturers [4]. - Photovoltaics: After the anti-involution policy in Q4 2024 and the rush for installation in Q1 2025, the photovoltaic sector's debt repayment ability did not continue to deteriorate during Q1 2025. However, starting in May 2025, the decline in production and prices has led to further deterioration in the sector's debt repayment and profitability. It is expected that the next phase of supply or demand-side support policies will further strengthen the industry [4]. - Energy Storage: Recent adjustments in the stock price of Deye Technology are mainly due to European inventory factors leading to a downward revision of performance expectations. However, its valuation has entered a reasonable range, and it is still considered to have allocation value. Continuous monitoring of monthly data for household storage in July-August is necessary. The outlook for large-scale energy storage and commercial energy storage in Europe remains high, with a core focus on Q2-Q3 performance or order releases [5]. - Controlled Nuclear Fusion: The sector has seen significant adjustments recently, primarily due to changes in market style and a lack of catalytic factors. Future focus should be on domestic experimental pile bidding and the resonance of technological progress between China and the U.S. Controlled nuclear fusion remains an important thematic investment opportunity, with potential for repeated market speculation [6].

Investment Ratings - Power Equipment New Energy: Buy (Maintain) - Public Utilities: Buy (Maintain) - Environmental Protection: Buy (Maintain) [1] Core Views - Wind Power: Document 136 reshapes the logic of new energy installations, with wind power's output curve being favorable. Sales of wind power stations are expected to recover, and profits from wind turbine manufacturing are likely to improve. Focus on wind turbine manufacturers, with Q2 performance potentially under pressure, but watch for profitability improvements in Q3 and Q4, as well as progress in sales of power stations. Recommended companies include Mingyang Smart Energy, Yunda Co., and Goldwind Technology [4] - Solid-State Batteries: Companies like Winbond Technology, Xianlead Intelligent, and Xingyun Co. have completed the delivery of core equipment for solid-state batteries, significantly catalyzing the sector. Investment in solid-state battery equipment is 400-500 million per GWh, significantly higher than traditional liquid lithium battery equipment. The demand for solid-state battery materials is expected to rise due to policy support and advancements in AI PCB concepts. Recommended companies include Honggong Technology, Naconor, Winbond Technology, and Xiamen Tungsten [4] - Photovoltaics: After the anti-involution policy in Q4 2024 and the rush for installations in Q1 2025, the photovoltaic sector's debt repayment ability did not deteriorate further. However, from May 2025, production and prices in the photovoltaic sector have declined, leading to further deterioration in debt repayment and profitability. Anticipated supply or demand-side policies may strengthen the sector. Focus on integrated companies with low PB ratios, such as Aiko Solar and Tongwei Co. [5] - Energy Storage: Recent stock price adjustments for Deye Co. are primarily due to European inventory factors affecting performance expectations. However, its valuation has entered a reasonable range, and it is still considered to have allocation value. Monitor monthly data on household storage in July and August 2025. The outlook for large-scale energy storage and commercial energy storage in Europe remains positive, with key focus on Q2-Q3 performance and order releases. Recommended companies include Haibo Technology, Sungrow Power, Goodwe, and Deye Co. [5] - Controlled Nuclear Fusion: Recent adjustments are mainly due to market style changes and fewer catalytic factors. Future focus should be on domestic experimental pile bidding and technological progress between China and the US. Controlled nuclear fusion is seen as an important thematic investment opportunity, with potential for market speculation. Recommended company is Hezhan Intelligent [5] Summary by Sections - Wind Power: New installed capacity in 2024 is expected to be approximately 75.8 GW for onshore wind, a year-on-year increase of 9.68%, while offshore wind is expected to be about 4.0 GW, a year-on-year decrease of 40.85%. In the first four months of 2025, new installed capacity reached 19.96 GW, a year-on-year increase of 18.53% [7][8] - Public Utilities: As of June 20, 2025, the price of 5500 kcal thermal coal at Qinhuangdao Port is 619 RMB/ton, a slight increase from the previous week. Imported thermal coal prices remain stable [35] - Energy Storage Projects: Recent bidding information shows multiple large-scale energy storage projects, with a total capacity of 2830 MW and 9740 MWh across various projects [34]

Core Viewpoint - The market's perception of valuation levels for the PCB and CCL industries has become more rational, with fundamental changes becoming more critical drivers of stock prices rather than valuation and earnings growth [1][2]. PCB Industry - The PCB industry has shown significant improvement in fundamentals, with a year-on-year revenue growth of 24% and a net profit growth of 52% in Q1 2025 [3]. - The average gross margin for PCB companies has risen to 20.2%, and the net profit margin has increased to 6.1% [3]. - Export quantities for PCB remained stable, with a notable year-on-year growth of 14% in February, although March showed no significant increase due to high base effects [3]. CCL Industry - The CCL industry has also seen improvements, with all major manufacturers achieving profitability in Q1 2025, and average gross and net profit margins rising to 15% and 3%, respectively [4]. - CCL manufacturers experienced a year-on-year price increase of 17%, 23%, and 14% from January to March, indicating strong market demand [4][5]. - The monthly revenue growth for Taiwanese CCL manufacturers was 22%, 60%, and 34% from January to March, reflecting a strengthening market sentiment [5]. Investment Strategy - The PCB industry is expected to continue its growth momentum into 2025, with a confirmed upward trend in demand recovery [6]. - Despite concerns over long-term demand due to trade tensions, the current stock prices and valuations in the sector are believed to reflect the worst expectations, presenting opportunities for strong alpha companies [6].