Core Viewpoint - The PCB industry is experiencing a significant expansion phase driven by strong demand from downstream manufacturers, which is also impacting the upstream PCB equipment sector. This expansion cycle is expected to lead to a notable increase in equipment order volumes and an upgrade in high-end PCB production lines, resulting in improved performance for PCB equipment manufacturers [1][2]. Group 1: Industry Expansion - Downstream PCB manufacturers are actively expanding production to meet demand, with several companies announcing new expansion projects in recent months, including notable projects from Huadian Co., Shennan Circuit, and Guanghe Technology [1]. - The capital expenditure guidance from companies like Pengding Holdings indicates a 51.5% year-on-year increase, reflecting the industry's high growth potential and sustainable future growth [1]. Group 2: Supply Chain Dynamics - Some upstream PCB equipment suppliers are experiencing supply tightness due to the rapid growth in global AI computing demand, which is accelerating the technological upgrades and capacity expansions for high-layer PCBs and high-end HDI boards [1][2]. - Chip Quik's order delivery schedule has extended to the third quarter of 2025, indicating a fully loaded production capacity and an optimistic business outlook [2]. Group 3: Technological Upgrades - AI's requirements for PCB performance are driving upgrades in layers, materials, and manufacturing processes, with AI server PCBs typically exceeding 20 layers, compared to traditional servers [3]. - Advanced manufacturing processes such as back drilling and resin-filled holes are being adopted to enhance the reliability and stability of PCBs, leading to increased value [3]. - The complexity of high-layer HDI boards is pushing for advancements in related equipment, with companies like Dazhu CNC developing new technologies to improve processing precision [3]. Group 4: Beneficiary Companies - Recommended beneficiaries in the PCB exposure equipment sector include Chip Quik [4]. - Dazhu CNC is highlighted for its drilling, exposure, forming, and testing equipment, while Dongwei Technology is noted for its PCB plating equipment [4]. - Ding Tai Gao Ke is recognized for its PCB drilling needles [4].

Group 1: Financial Performance - The net profit attributable to shareholders for Q1 is ¥163,470,377.43, a decrease of 83.47% compared to the same period last year, primarily due to a one-time gain from the disposal of shares in Dazhu Siter amounting to approximately ¥890 million in the previous year [3] - The net profit excluding non-recurring gains for Q1 is ¥71,901,945.12, an increase of 1,388.37% year-on-year, indicating no actual decline in performance [3][5] - The inventory turnover rate for 2023 is approximately 2.16, projected to increase to 2.41 in 2024, with measures in place to enhance inventory management [6] Group 2: Business Segments and Revenue - The general industrial laser processing equipment business achieved revenue of ¥5.971 billion, primarily from high-power laser cutting and welding equipment, as well as mid- and low-power laser marking and cutting equipment [3] - The company’s self-produced components, including laser devices and cooling systems, generated external sales of nearly ¥200 million in 2024 [6] - The overseas revenue proportion reached 14.26% in 2024, an increase of 88% compared to 2023, reflecting successful market expansion efforts [6] Group 3: Strategic Insights and Market Position - The company focuses on intelligent manufacturing equipment and key components, maintaining a vertical integration advantage and leveraging industry policy support [3] - In the semiconductor sector, the company provides various intelligent manufacturing equipment, with a high degree of localization achieved in core components [7] - The company is actively pursuing market opportunities in the electric vehicle sector, collaborating with leading manufacturers like BYD and Great Wall Motors [5] Group 4: Future Outlook and Challenges - The company is developing strategies to enhance profitability in consumer electronics and PCB equipment by innovating product offerings and improving production processes [5] - The anticipated compound growth rates for the PCB industry in Southeast Asia are projected at 7.1%, surpassing China's 4.3%, indicating a shift in market dynamics [4] - The company is formulating a market value management system in accordance with regulatory guidelines to address stock price volatility and enhance shareholder value [5][7]