New Stock Outlook | Shenzhen Hans CNC Technology to be listed in Hong Kong for the second time: 2024 performance doubles, growth under deep industry transformation can be expected.

Since 2025, the Hong Kong stock market has been experiencing a wave of "A+H" listings. Just recently, a leading PCB company in the A-share market has also embarked on its journey to list in Hong Kong. On May 30th, Shenzhen Hans CNC Technology Co., Ltd. (hereinafter referred to as "Shenzhen Hans CNC Technology") submitted its listing prospectus to the Hong Kong Stock Exchange, planning to list on the main board of Hong Kong with CICC as the sole sponsor. Established in 2002, the company is a service provider focusing on specialized PCB (Printed Circuit Board) production equipment solutions, mainly engaged in the research, development, production, and sales of PCB specialized production equipment, providing end-to-end process solutions for PCB manufacturers. In February 2022, Shenzhen Hans CNC Technology (301200.SZ) went public on the ChiNext Board of the Shenzhen Stock Exchange and currently has a market value exceeding 15.5 billion yuan. In addition, the company's controlling shareholder, Han's Laser Technology Industry Group (002008.SZ), currently has a market value exceeding 24.7 billion yuan. According to observations, since 2009, based on revenue, Shenzhen Hans CNC Technology has ranked first on the CPCA's list of specialized equipment and instruments for 16 consecutive years. Based on revenue in 2024, the company is the world's largest manufacturer of PCB specialized production equipment, with a global market share of 6.5%. With such a leading position in the PCB industry, what kind of development story will unfold as it lists in Hong Kong, and what will be its investment value? Outstanding Performance in 2024, Revenue Exceeding 3.3 Billion Yuan Having been deeply involved in the PCB specialized equipment field for over 20 years, Shenzhen Hans CNC Technology has now established a broad and diversified business portfolio. Specifically, the company has the most extensive product portfolio in the global PCB specialized equipment industry, covering almost all PCB production major processes such as drilling, exposure, pressing, shaping, and testing. Leveraging its wide product range, advanced technology, and strong production capacity, the company has sold its PCB specialized production equipment to over 10 countries and regions during the reporting period. The company's customers also include 80% of the top 100 PCB companies in the global Prismark PCB enterprise rankings for 2024. However, it is important to note that the business and financial performance of Shenzhen Hans CNC Technology depends on the demands of many downstream industries, with a surge in downstream industry demand driving performance growth, and vice versa. According to financial report data, since 2022, the revenue performance of Shenzhen Hans CNC Technology has fluctuated, decreasing from 2.786 billion yuan in 2022 to 1.634 billion yuan in 2023, mainly due to the decrease in industry output values in downstream PCB equipment industries, leading to a decrease in PCB demand. This also reflects the downturn in the PCB industry at that time, with the overall market demand for PCB specialized equipment in China decreasing from approximately 3.9 billion U.S. dollars in 2022 to approximately 3.7 billion U.S. dollars in 2023. From then until 2024, the rise of artificial intelligence technology sparking a computing power revolution, combined with continuous growth in the new energy vehicle industry and other favorable factors, the PCB industry saw a turning point. In 2024, Shenzhen Hans CNC Technology achieved a revenue of 3.343 billion yuan, a year-on-year growth of 104.56%. At the same time, the net profit and gross profit of Shenzhen Hans CNC Technology showed fluctuations, but by 2024, these two core financial data had also rebounded significantly. From 2022 to 2024, the company's gross profits were approximately 948 million, 477 million, and 908 million yuan, with a year-on-year growth rate of 90.33% in 2024; and the net profits were approximately 432 million, 136 million, and 300 million yuan, with a year-on-year growth rate of 120.82% in 2024. Possibly due to product restructuring, the gross profit margin of the company actually decreased in 2024. According to the prospectus, from 2022 to 2024, the company's gross profit margin was approximately 34.02%, 29.18%, and 27.15%. The decrease in gross profit margin was mainly attributed to the decrease in the gross profit margin of drilling equipment. It is worth noting that drilling equipment is the main source of income for the company, accounting for 62.8% of its income in 2024, followed by exposure equipment, accounting for 10.2% of income in 2024. The decrease in the gross profit margin of this business sector during the reporting period was partly due to product restructuring, such as an increase in the sale of automated drilling equipment with lower gross profit margins, as well as the company's adjustment of the average selling price of drilling equipment in 2024. As seen above, along with the recovery in downstream demand, Hans CNC Technology achieved significant recovery in performance in 2024. Despite a decrease in gross profit margin during the reporting period, it was due to proactive adjustments by the company. With the weakening negative impact of the company's product adjustments and the favorable backdrop of industry demand recovery, the company's performance is promising. Industry Experiencing Deep Transformation, Opportunities and Challenges Coexist Driven by the rapid development of AI industry chain infrastructure, the global electronics terminal industry saw continuous strong growth in revenue from 2023 to 2024, with servers and data storage devices becoming the most dynamic sub-sectors. As PCBs are the basic enablers for modern electronic products, the surge in demand for electronic terminal devices, combined with continuous upgrades in functionality, has fueled a considerable growth in PCB products and catalyzed a profound transformation in the PCB specialized equipment industry. Specifically, with the continuous acceleration of AI technology and automotive intelligence, the global PCB industry market demand experienced steady growth in 2024. The global PCB industry output value (referring to the total market value of PCB products) increased from 652 billion U.S. dollars in 2020 to 736 billion U.S. dollars in 2024, from 2020 to 2024.The compound annual growth rate (CAGR) is 3.1%. By 2029, the global PCB industry output is expected to reach $96.4 billion, with a CAGR of 5.6% from 2024 to 2029.(Source: Shenzhen Hans CNC Technology Prospectus) However, the competitive landscape of the global PCB specialized equipment industry is relatively fragmented, with fierce competition within the industry. By revenue in 2024, the top five global market participants collectively hold about 20.9% of the total market share. Major market participants include well-known electronic instrument manufacturers, who also supply PCB specialized production equipment, as well as market participants similar to Shenzhen Hans CNC Technology, focusing on the development of PCB specialized production equipment. By revenue in 2024, we rank first among all PCB specialized production equipment manufacturers globally, holding approximately 6.5% of the global market share. Meanwhile, in the domestic market, the top five manufacturers collectively held approximately 23.9% of the total market share in 2024. In this fragmented environment, Shenzhen Hans CNC Technology has become the market leader, ranking first among Chinese PCB specialized production equipment manufacturers by revenue in 2024, holding approximately 10.1% of the domestic market share. Within this, Shenzhen Hans CNC Technology faces two major risks: first, the impact of cyclical fluctuations in the industry on performance. PCB equipment demand is highly correlated with the prosperity of downstream electronic industries, showing clear cyclical patterns. Second, intensified domestic competition, facing risks such as price wars and challenges in specific fields, such as Circuit Fabology Microelectronics Equipment rapidly increasing its market share in the LDI field; and Kunshan Dongwei Technology having a certain advantage in vertical electroplating equipment (VCP). However, in the view of GMTEight, Shenzhen Hans CNC Technology's leading position in the industry is stable, benefiting deeply from the upgrade (high-end specialization) of the PCB industry and the irreversible trend of domestic substitution, with strong technological capabilities and a high-quality customer base. Additionally, being in a field that aligns with national strategic support directions (high-end manufacturing, independent controllability), it has enormous long-term growth potential, and investors need not worry too much about the competitive edge of major players. In summary, it is clear that Shenzhen Hans CNC Technology, as a leading enterprise in the domestic PCB equipment industry, clearly has strong long-term investment value under prominent core advantages and broad growth opportunities. This secondary listing in Hong Kong at a reasonable valuation level, with a long-term holding strategy in mind, may be a good choice for investors.