Summary of the Conference Call Company Overview - The company discussed is **帝尔激光 (Dier Laser)**, which specializes in laser technology applications in various industries, including photovoltaic (PV), semiconductor, and consumer electronics. The company has pioneered the introduction of laser technology into the PV industry in China and is focused on enhancing conversion efficiency through technological development and collaboration with clients [2][3]. Financial Performance - For the first three quarters of 2025, the company reported: - **Revenue**: 1.781 billion CNY, a year-on-year increase of **23.69%** [3] - **Net Profit**: 496 million CNY, a year-on-year increase of **29.39%** [3] - **Gross Margin**: 46.2%, slightly down from previous periods, indicating a stable high level of technical barriers [3][4] - **Net Profit Margin**: 27.85%, up from 26.63% in the same period last year [4] - **R&D Expenditure**: 178 million CNY, down **15.29%** year-on-year, accounting for **10.02%** of revenue [3][4] Industry Insights - The company is actively expanding its laser applications in the PCB industry, focusing on high-density multilayer boards and laser drilling technology [2][6]. - The company has developed new technologies for **TOPCon** and **BC** laser applications in the PV sector, with ongoing orders and technological advancements [2][3]. Market Trends and Projections - The company anticipates a cautious outlook for the BC battery industry in 2026 due to unclear policies affecting new capacity additions. However, it expects a minimum of **40-50 GW** of new BC capacity in the coming year [10][11]. - The company has received orders for **0.5 GW** in the BC sector and is optimistic about future orders, contingent on policy clarity [11][12]. Customer Engagement and Product Development - The company is currently in discussions with **2-3 clients** regarding PCB laser drilling equipment, with sample deliveries expected by the end of the year [7][8]. - The company is focusing on enhancing its laser technology for the PCB sector, particularly in response to the growing demand driven by AI applications [6][7]. Challenges and Strategic Focus - The company is facing challenges in the BC battery sector due to fluctuating market conditions and policy uncertainties, which may affect the pace of new capacity additions [10][11][12]. - The company is diversifying its R&D efforts beyond the PV sector, exploring applications in non-PV fields such as micro LED and advanced packaging technologies [41][42]. Key Technologies and Innovations - The company is developing **super-fast laser technology** for various applications, including PCB and semiconductor industries, with a focus on improving efficiency and reducing material damage [52][53]. - The company is also exploring the potential of **TGV** technology in the foldable screen market, with ongoing client validations and potential breakthroughs expected in the near future [45][46]. Conclusion - Overall, 帝尔激光 is positioned to leverage its technological advancements in laser applications across multiple industries while navigating market challenges and policy uncertainties. The company remains focused on maintaining its competitive edge through innovation and strategic partnerships.

Summary of PCB Equipment Conference Call Industry Overview - The conference call focuses on the PCB (Printed Circuit Board) industry, particularly the advancements driven by AI computing servers and the transition towards high-end, high-layer PCB designs [1][2][3]. Key Points and Arguments 1. **AI Computing Influence**: The rise of AI computing servers is pushing the PCB industry towards higher-end and more complex designs, with Nvidia's Ruby architecture replacing traditional copper cables with PCBs to meet high-density interconnect needs [1][5][6]. 2. **High-Density Interconnect (HDI) Boards**: The demand for high-layer HDI boards has increased, with examples like the 24-layer 6-stage HDI board requiring advanced drilling and laser exposure technologies [2][4]. 3. **Mechanical Drilling Equipment**: The market for mechanical drilling equipment is experiencing a shift towards domestic production, with companies like Dazhu CNC increasing their market share and improving yield and efficiency to compete with imported products [1][11][12][13]. 4. **Laser Drilling Technology**: The introduction of ultrafast laser drilling technology is expected to capture market share from traditional CO2 lasers due to its superior material compatibility and micro-hole processing capabilities [1][14]. 5. **Orthogonal Backplane Adoption**: The Ruby architecture's use of orthogonal backplanes instead of copper cables addresses high-density interconnect challenges, optimizing internal server space and improving signal transmission efficiency [7][8]. 6. **CPS Solution Demand**: Nvidia's CPS (Context Processing System) introduces new PCB demands, including CPX chip carrier PCBs and upgraded interlayer materials, further driving PCB industry growth [9]. 7. **Future of PCB in Servers**: The future application of PCBs in servers is promising, with a trend towards replacing copper cables with synchronous lines, enhancing signal transmission and space utilization [10]. 8. **Capital Expenditure Growth**: The shift towards high-end PCB technologies is expected to lead to increased capital expenditures from downstream manufacturers, benefiting equipment suppliers across various core processes [10][19]. 9. **Challenges in Equipment Requirements**: High-layer HDI and advanced materials necessitate improved precision and efficiency in pressing, plating, and testing equipment, with current domestic equipment not fully meeting high-end requirements [19]. 10. **Dazhu CNC's Competitive Edge**: Dazhu CNC's strong positioning across the PCB supply chain, including drilling, exposure, and testing, positions it well for growth amid industry upgrades driven by AI [20][21]. Additional Important Insights - **Market Dynamics**: The PCB industry is witnessing a rapid shift towards domestic alternatives in drilling and laser technologies, with significant improvements in performance and cost-effectiveness [12][15]. - **Investment Recommendations**: Key investment opportunities include Dazhu CNC for its drilling equipment, Ding Tai Gao Ke for material changes, and Xin Qi Wei Zhuang for its accelerated import substitution and capacity expansion [22]. This summary encapsulates the critical developments and trends within the PCB industry as discussed in the conference call, highlighting the implications for equipment manufacturers and potential investment opportunities.

Investment Rating - The report assigns a "Strong Buy" rating to the company, with a target price of 65.13 CNY based on a projected 30x PE for 2026 [3][11]. Core Insights - The company is positioned to benefit from a new growth cycle driven by AI edge computing and AI PCB expansion, following a historical pattern of stock price and operational cycles [9][37]. - The company has established itself as a leading global provider of intelligent manufacturing equipment solutions, with a diversified product range across various sectors including consumer electronics, new energy, and semiconductors [15][18]. Summary by Sections Company Overview - The company has evolved over 30 years into a platform technology leader, with a comprehensive product portfolio that includes equipment for information technology, new energy, semiconductor, and general laser processing [15][18]. - The management team possesses extensive industry experience, contributing to stable operational performance [25][26]. Consumer Electronics - Major clients are initiating a new innovation cycle, with AI hardware upgrades driving increased equipment demand [40]. - The company is actively expanding its product offerings in 3D printing and other new technologies to meet evolving market needs [40][48]. AI PCB - The AI sector is expected to trigger the largest expansion wave in PCB manufacturing, with a surge in equipment demand driven by high-density and high-performance requirements [9][11]. - The company holds the leading market share in PCB equipment, particularly in drilling and imaging technologies, positioning it well to capitalize on industry growth [9][11]. Financial Projections - Revenue forecasts indicate a growth trajectory with total revenue expected to reach 29.9 billion CNY by 2027, reflecting a compound annual growth rate of 21.5% [3][11]. - Net profit is projected to rebound significantly, with estimates of 3.33 billion CNY by 2027, following a dip in 2025 [3][11]. Investment Thesis - The combination of AI edge computing and AI PCB advancements is anticipated to drive a new growth cycle for the company, supported by historical performance patterns [9][37]. - The company has successfully incubated numerous subsidiary companies, enhancing its competitive edge across various technology sectors [10][11].

Summary of Conference Call on PCB Equipment Industry Industry Overview - The PCB industry is experiencing significant growth driven by AI, with leading manufacturers like Shenghong, Pengding, and Jingwang expanding capacity to meet the rising demand for multilayer and HDI boards, particularly those with over 20 layers and advanced multilayer boards reaching up to hundreds of layers [1][3][8]. Key Points and Arguments 1. **Increased Capital Expenditure**: Downstream PCB manufacturers are expected to exceed capital expenditure forecasts, with significant investments in equipment from leading firms [3]. 2. **Growth in Multilayer and HDI Board Demand**: AI is increasing the share of multilayer and HDI boards in the industry, with many AI-related PCBs having at least 20 layers [3][8]. 3. **High Precision Requirements**: The trend towards multilayer PCBs is leading to smaller hole diameters and narrower line widths, necessitating higher precision in exposure equipment, especially for HDI products [3][7]. 4. **New Technology Iteration**: Future packaging technologies may evolve towards more advanced solutions, increasing the demand for high-end exposure equipment, which accounts for over 15% of total equipment investment [4]. 5. **Direct Imaging Technology**: Laser Direct Imaging (LDIA) technology is the mainstream method, offering 3-4 times higher production efficiency and precision down to 5 microns, compared to traditional photolithography [5]. 6. **Market Concentration**: The PCB exposure equipment market is concentrated, with the top five suppliers holding over 55% market share, and New Micro Equipment leading with a 15% share [9][10]. 7. **New Micro Equipment's Market Position**: New Micro Equipment has a strong presence in both PCB and semiconductor fields, providing high-precision equipment from tens of microns to nanometer levels, with a focus on high-end HDI equipment [10][11]. Additional Important Insights - **Future Development Directions**: New Micro Equipment plans to leverage its technological advantages in both semiconductor and PCB sectors, expand international business, and enhance production capacity [11][12]. - **2024 Equipment Shipment and Capacity**: In 2024, the company shipped 378 units, with actual production exceeding 400 units, and is expected to maintain high delivery rates into 2025 [12][13]. - **Order Growth in Laser Drilling**: The company has received orders for its laser drilling business, with significant growth anticipated in the semiconductor sector [13][15]. - **Overall Development Logic**: The company's growth is driven by accelerated downstream expansion, new technology iterations, increased delivery capabilities, and breakthroughs in the semiconductor field [16]. This summary encapsulates the key insights from the conference call regarding the PCB equipment industry, highlighting the growth drivers, market dynamics, and the strategic positioning of leading companies within the sector.

Investment Rating - The report assigns a "Buy" rating to the company for the first time [5] Core Views - The company is a global leader in PCB equipment, benefiting significantly from the current demand for high-performance computing [5] - The company has a comprehensive product matrix covering all major processes in PCB manufacturing, including drilling, exposure, lamination, forming, inspection, and attachment [21][15] - The company has shown strong revenue growth, with a projected increase in net profit from 696.84 million yuan in 2025 to 1.73 billion yuan in 2027 [5] Summary by Sections Company Overview - Established in 2002, the company specializes in PCB equipment and has been listed on the Shenzhen Stock Exchange since February 2022 [14] - The company has a wide range of products covering various PCB manufacturing processes and serves top global PCB manufacturers [15][21] Industry Analysis - The PCB industry is experiencing a recovery driven by new demands from AI servers and high-performance infrastructure, with a projected growth in the global PCB market from $73.57 billion in 2024 to $94.66 billion in 2029 [41] - The demand for high-end PCB products, such as HDI boards and multilayer boards, is expected to grow significantly, becoming a core driver of industry growth [41][45] Financial Performance - The company reported a revenue of 2.38 billion yuan in the first half of 2025, a year-on-year increase of 52.26%, and a net profit of 263 million yuan, up 83.82% [2][25] - The company's revenue is projected to reach 5.83 billion yuan in 2025, with a net profit of 696.84 million yuan, reflecting a strong recovery trend [5][24] Market Position - The company holds a leading market share of 10.1% in China and 6.5% globally in the PCB equipment sector [4] - The company has a strong presence in drilling and exposure equipment, with its products ranking second globally in mechanical drilling and laser drilling [4][15]

Summary of PCB Industry and Company Insights Industry Overview - The PCB industry is experiencing a significant surge in demand driven by AI applications, with expectations for this trend to continue until at least 2026 [2][14] - High-end PCBs are benefiting from material and structural upgrades, with layer counts increasing to over 24 layers and hole density rising, leading to a growth in the value of drilling equipment [1][3] Key Points on High-End PCB Products - High-end PCB materials are evolving from M5/M6 to M7/M8, with M8 already in mass production and M9 still in testing [1][5] - The increase in PCB thickness has led to the emergence of new drilling techniques such as segmented drilling and back drilling, which consume more drill bits and may require layered processing [12] - The value of high-end AI machinery is 20%-100% higher than that of standard machinery, with potential value growth of four to five times [12] Impact of New Technologies - New technologies are catalyzing the development of high-end PCBs, particularly in drilling, exposure, detection, and plating processes, with equipment value potentially increasing by up to four times [3][13] - The penetration rate of laser drilling is expected to continue rising, with CO2 and UV laser types being utilized for different applications [7][10] - The future of laser drilling technology is moving towards ultra-fast lasers, which offer significant improvements in precision, quality, and efficiency [10] Company Performance and Recommendations - Companies such as DingTai, Dazhong CNC, and Kaige Precision are performing exceptionally well due to the increased demand for AI-related high-end equipment, with notable improvements in gross margins and performance [3][15] - Dazhong CNC reported a doubling of its performance in Q2 2025, driven by the increased share of high-end machinery [15] - Other companies like New Flag Microelectronics and Dongwei Technology are also showing promising results, although their performance release may vary due to equipment delivery timelines [16] Future Trends in the PCB Industry - The PCB industry is expected to continue evolving with a focus on the increasing share of new technologies, particularly in laser drilling [17] - Recommended companies for investment include Dazhong CNC, New Flag, DingTai, and Dongwei, along with emerging players benefiting from new technologies such as Di'er and Inno Laser [17]

Core Viewpoint - The company reported strong financial performance for the first half of 2025, with significant year-on-year growth in revenue and net profit, driven by demand in the AI server market and advancements in drilling equipment technology [1][4]. Financial Performance - For the first half of 2025, the company achieved operating revenue of 2.382 billion yuan, a year-on-year increase of 52% [1] - The net profit attributable to shareholders reached 263 million yuan, up 84% year-on-year [1] - The non-recurring net profit was 250 million yuan, reflecting a 101% increase year-on-year [1] - The gross margin was 30.28%, an increase of 1 percentage point year-on-year, while the net margin was 10.97%, up 2 percentage points year-on-year [1] - In Q2 2025, the company reported operating revenue of 1.422 billion yuan, a 75% increase year-on-year and a 48% increase quarter-on-quarter [1] Product Development and Market Position - The company capitalized on the AI server opportunity, with drilling equipment revenue reaching 1.692 billion yuan in the first half of 2025, a 72% increase year-on-year [2] - The gross margin for drilling equipment was 26.10%, up 0.4 percentage points year-on-year [2] - The company has developed new drilling machines with advanced features, such as a 3D back drilling function, which have been certified by industry clients and are in high demand [2] - The laser drilling product matrix includes various types of laser drilling equipment tailored for different PCB segments, with ongoing upgrades to meet the evolving technical requirements of HDI products [3] - The company’s new laser processing solutions have achieved high precision requirements for small holes and complex shapes, gaining recognition and orders from downstream customers [3] Comprehensive Service Offering - The company is one of the largest providers of PCB specialized equipment, with detection equipment revenue of 209 million yuan, an 82% increase year-on-year, and a gross margin of 41% [4] - Exposure equipment revenue was 124 million yuan, down 23% year-on-year, while forming equipment revenue was 141 million yuan, up 4% year-on-year [4] - The company’s one-stop service significantly reduces customer procurement and maintenance costs, facilitating ongoing technical collaboration and communication with clients [4] Investment Outlook - The company is expected to achieve revenues of 4.973 billion yuan, 6.703 billion yuan, and 8.373 billion yuan for the years 2025 to 2027, with net profits of 596 million yuan, 822 million yuan, and 1.033 billion yuan respectively [4] - Corresponding price-to-earnings ratios are projected to be 63.22, 45.79, and 36.46 times for the same years [4] - The company is well-positioned to benefit from the growing demand in the AI server market and maintains a leading position in drilling equipment [4]

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].

Summary of PCB Equipment Conference Call Industry Overview - The PCB equipment industry is experiencing significant growth driven by AI, with global demand for server PCBs expected to exceed 33% in 2024, accounting for approximately 1/7 of the global PCB market value, which is over $73 billion. China holds a 56% share of this market, projected to increase further, benefiting domestic equipment and material suppliers [3][1][2]. Key Insights on Laser Drilling Technology - Laser drilling technology is becoming increasingly important due to the miniaturization of PCB hole diameters, especially in HDI boards where blind and buried holes are prevalent. Investment in drilling equipment represents over 20% of total PCB equipment investment and is expected to grow [1][4][5]. - Laser drilling machines offer significant advantages over mechanical drilling machines, including higher precision and efficiency, particularly in high-end HDI board applications. The market share of laser drilling machines is anticipated to gradually surpass that of mechanical drilling machines [6][11]. - Different types of laser drilling machines are suited for various applications: CO2 lasers for general HDI boards, UV lasers for flexible circuit boards, and ultrafast lasers for high-precision needs such as packaging substrates [7][8]. Market Dynamics - The laser drilling equipment market is valued at approximately $1 billion, with CO2 lasers accounting for over 70% of the market share. Ultrafast lasers are expected to show the most significant growth potential in the future [11][12]. - The market is primarily concentrated in Asia, with domestic manufacturers like Dazhu CNC accelerating their product line development to capture the growing demand for advanced drilling equipment [11][12]. Trends and Recommendations - The current trend in the laser drilling equipment market indicates a shift from CO2 lasers to ultrafast lasers, which are moving from testing to mass production stages. Key companies in this transition include Dier Laser, Inno Laser, and Tianzhun Technology, with recommendations for investors to focus on these firms [12][13]. - The PCB laser drilling equipment market is in the early stages of domestic substitution, with opportunities for reshaping the supply landscape as domestic manufacturers increase their technological capabilities [13][14]. - Investment recommendations include focusing on companies with strong price and profit elasticity, such as Dazhu Technology, Xinqi High-Tech, and Ding Tai High-Tech, as well as those benefiting from new laser drilling technologies [15]. Conclusion - The PCB equipment industry is poised for growth, driven by advancements in laser drilling technology and increasing domestic production capabilities. Investors are encouraged to monitor key players and emerging trends within this dynamic market.