Guotai Haitong: Expanding the Software Ecosystem to Broaden the Competitive Boundary of 3D Printing Recommends CREALITY (03388)

Guotai Haitong released a research report stating that global shipments of entry-level 3D printers will increase by 26% year-on-year in 2025, and by 39% year-on-year in the first quarter of 2026. AI is driving consumer-level 3D printing competition from a focus on standalone hardware parameters to collaborative hardware and software, software ecosystems, and data closed-loop competition. The industry competitive landscape is becoming concentrated at the top, with the competitive focus shifting from visible parameters to foundational system capabilities. The firm recommends CREALITY (03388), whose full product matrix, global channels, and expansion of Creative Cloud content will enhance user coverage, and whose AI applications are expected to unlock new growth. The main viewpoints of Guotai Haitong are as follows: AI is improving the consumer-level 3D printing experience in two aspects: "ease of printing" and "stable printing," expanding the industry from a tool for makers to one for mass creation and small-batch production. 1) "Ease of printing" determines new user conversion: On the hardware side, integrated design, automatic leveling, and parameter calibration are pushing FDM devices into a system-level out-of-the-box stage. On the software side, one-click printing reuses models, materials, and slicing configurations. Generative AI expands model acquisition from "searching existing content" to "generating based on demand," shortening the path from idea to finished product. 2) "Stable printing" determines whether equipment can be continuously used: On the product side, first-layer checks and AI anomaly detection improve print success rates and reduce manual monitoring, while increased equipment usage further drives demand for consumables, accessories, and services, extending the revenue structure from one-time sales to recurring business. On the operational side, stable device operation and multi-machine management promote the use of consumer-grade devices in print farms, taking on personalized, small-batch orders. 3) The consumer-level market continues to expand: According to CONTEXT, global shipments of entry-level 3D printers will increase by 26% year-on-year in 2025 and by 39% year-on-year in the first quarter of 2026. AI is driving consumer-level 3D printing competition from a focus on standalone hardware parameters to collaborative hardware and software, software ecosystems, and data closed-loop competition. 1) The industry competitive landscape is becoming concentrated at the top. According to Zhizhi Consulting, by 2025, the CR4 for global consumer-grade 3D printer GMV will reach 72%. TAZHU will achieve a market share of 43%, ranking first. 2) Reviewing TAZHU: Early hardware advantages establish leadership, and the software ecosystem continues to amplify this advantage. Hardware: The company integrated high-speed motion, automatic calibration, multi-color feeding, and status sensing first through the X1, and replicates this across different price ranges and application scenarios with the P, A, and H series; Software: The company enhances user conversion, equipment activity, and repurchase through a quadruple flywheel of workflow, content, data, and commercialization, transforming hardware advantages into sustainable barriers. 3) The competitive focus is shifting from visible parameters to foundational system capabilities. AI lowers the threshold for using open-source tools and improves the development efficiency of closed-source software, with barriers remaining from the integration with specific printing systems: Model acquisition has evolved from competition over file quantity to competition over validated printing projects; slicing algorithms rely on model calibration, material databases, and real printing feedback; visual monitoring hinges on fault samples, recognition accuracy, and closed-loop processing capabilities. Based on this, major manufacturers are forming differentiated AI ecosystem paths: TAZHU emphasizes vertical integration of software and hardware, while CREALITY relies on its full range of hardware, global channels, and open compatibility to promote the collaborative synergy of FDM and light-curing dual technology routes. Intelligent faction focuses on deepening layout around light-curing processes and content for professional creators. CREALITY possesses scale in products, manufacturing, and global channels, and its AI ecosystem is expected to drive the transformation of its hardware foundation into upgrades in product structure and profit models. In the first half of 2026, the company's operating revenue was 1.626 billion yuan, with a gross margin of 30.8%, and an adjusted net loss of 16 million yuan; Creative Cloud added over 1 million registered users, with average monthly active users increasing by 68.3% year-on-year. If the company further integrates data from Creative Cloud, Creality Print, and device sides, and promotes the volume of mid-to-high-end products like the K series, it is expected to convert installation, channel, and content advantages into barriers in the software ecosystem. Risk Warning: The printability of AI-generated models may fall short of expectations; progress in multi-color and multi-material printing technology may lag; copyright and content governance risks in model communities; risks related to user data, network, and device security.