Soochow: The first year of PCB equipment industry performance realization Focus on non-linear growth brought by technological inflation.

Soochow released a research report stating that the top PCB equipment companies are expected to see a year-on-year increase of +55% in revenue and +124% in net profit in 2025. In the first quarter of 2026, the contract liabilities are expected to increase by 104% year-on-year, indicating a sustained prosperity in the industry. The downstream PCB manufacturers are increasing their capital expenditures, driven by hardware iterations such as Rubin and TPU, which are boosting the demand for high-end PCBs. Technological innovations such as ultra-fast laser drilling, high aspect ratio drilling needles, and mSAP process are creating non-linear growth opportunities. Key points from Soochow: - Strong performance and full orders expected in the PCB equipment sector in 2025 and the first quarter of 2026. - The industry is expected to see high growth in 2025, primarily due to the extensive expansion of global AI computing power infrastructure. The total revenue of the top 5 enterprises reached 11.6 billion RMB in 2025, a year-on-year increase of 55%, with a net profit of 1.855 billion RMB, a year-on-year increase of 124%. In the first quarter of 2026, contract liabilities are expected to increase by 104% compared to the previous year, indicating a continuous upward trend in industry prosperity. - Increasing downstream PCBCAPEX to support the demand for upstream equipment. - Hardware iterations driving increased PCB demand. - Non-linear growth due to technological advancements. Investment recommendations include drilling equipment, LDI equipment, electroplating equipment, solder paste printing equipment, and drilling needle companies listed in the report. Risks include macroeconomic fluctuations, unexpected delays in PCB factory expansions, and lower-than-expected demand for computing servers.