HK Stock Market Move | Shenzhen Han's CNC Technology (03200) rises more than 7% on news of the M9 Q layout plan bringing in high demand for fast laser drilling. The company benefits from strong growth in demand from AI PCB manufacturers.

Shenzhen Han's CNC Technology (03200) rose more than 7%, up 7.58% to HK$127.8 as of the time of writing, with a turnover of HK$130 million. Soochow released a research report pointing out that since the fourth quarter of 2024, capital expenditures in PCB factories have driven equipment factory performance. A 40 times longer ratio drill bit is the most elastic link, and it is recommended to pay attention to the progress of related companies. The bank believes that the M9 Q scheme brings demand for ultra-fast laser drilling. Compared to CO2 laser drilling, ultra-fast laser drilling has the advantages of strong material compatibility for processing high melting point materials and finer micropore processing. Orthogonal backplane and middle plate are expected to introduce Q cloth as an interlayer material, driving demand for ultra-fast laser drilling, and recommending drill equipment leader Shenzhen Han's CNC Technology. Citigroup stated that it is initiating coverage of Shenzhen Han's CNC Technology with a "buy" rating and a target price of HK$142, as the Hong Kong stock price of Shenzhen Han's CNC Technology is discounted by about 36% compared to the average price of A shares in the past month, making the risk-return ratio more attractive. The bank is optimistic about the company as a leading Chinese manufacturer of PCB drilling equipment, benefiting from strong demand growth from AI PCB manufacturers such as Victory Giant Technology.