Shenzhen Hans CNC Technology (03200) Net Profit Up 214% in First Three Quarters, AI Computing Power "Shovel Seller" Logic Continues to Pay Off

Recently, Shenzhen Hans CNC Technology (03200) released its performance express report for the first three quarters of 2026. Data show that the company achieved operating revenue of RMB 7.841 billion (the same below), a year-on-year increase of 100.90%; net profit attributable to shareholders of the parent company was RMB 1.544 billion, a year-on-year increase of 214.03%. On a quarterly basis, net profit attributable to shareholders of the parent company in the third quarter was approximately RMB 587 million. Although it declined slightly on a quarter-on-quarter basis from RMB 634 million in the second quarter, the year-on-year increase remained considerable. The quality of this report card lies in the fact that it validates an industry judgment: the beneficiary chain of the AI computing power race is being substantively transmitted from chips and complete server systems upstream to precision processing equipment. Shenzhen Hans CNC Technology explicitly stated in the announcement that the growth in performance was mainly due to significant growth in demand for high-end AI PCBs, including high-layer-count HDI boards for next-generation rack server computing power and switching units, N+N structure high-layer boards, and mSAP-type substrates for 800G and 1.6T high-speed optical modules. However, it was noted that the markets short-term reaction to this was rather subtlebefore and after the earnings release, the companys H-share stock price pulled back. This short-term mismatch between performance and share price precisely provides a window for observing the pricing logic of the current AI investment cycle. The shovel seller in the AI computing power wave The core logic of Shenzhen Hans CNC Technology can be summarized as the shovel seller. In the industrial chain of AI computing power infrastructure, PCB is the key carrier for chips and signal transmission, and what Shenzhen Hans CNC Technology provides is the specialized equipment needed to manufacture these high-end PCBs. The companys main product, mechanical drilling machinesespecially ultra-high aspect ratio through-hole drilling machines for AI computing power scenarios and high-precision 3D drilling and inspection integrated mechanical drilling machineshas established a significant advantage in the global market. According to Prismark market forecasts and calculations based on the companys delivery data, the global market share of such products in 2025 is approximately 50%. At the same time, the company has also deployed CCD six-axis independent mechanical drilling machines, ultrafast laser drilling equipment, LDI laser direct imaging equipment, and high-precision testing equipment, capable of providing complete solutions for high-layer-count HDI boards and advanced packaging substrates. At the customer level, the companys products have covered more than 80% of the global top 100 PCB companies and have formed deep ties with a number of leading domestic PCB companies. As AI computing power construction enters a high-prosperity stage, downstream PCB manufacturers willingness to expand capacity strengthens, and the equipment segment naturally benefits first. Shenzhen Hans CNC Technologys doubling of revenue and more than tripling of net profit in the first three quarters are precisely the result of this chain being realized. Product mix upgrading drives high performance growth From the perspective of financial performance, Shenzhen Hans CNC Technologys current round of growth does not rely solely on order volume expansion, but more clearly reflects the improvement in profit quality brought by product mix upgrading. In the first half of 2026, the companys net profit attributable to shareholders of the parent company increased by 263.45% year on year, and the net profit margin improved significantly; in the first three quarters, net profit attributable to shareholders of the parent company reached RMB 1.544 billion, and the growth rate of net profit excluding non-recurring gains and losses was even higher, reaching 222.52%. The continued faster growth of profit than revenue indicates that the rising share of high-value-added equipment is driving an increase in overall profitability. It was noted that AI PCBs are imposing structural upgrading requirements on processing techniques, and this change falls precisely in the area where Shenzhen Hans CNC Technology is strongest. PCBs used in AI servers have more layers and higher wiring density, and the number of drilled holes increases substantially accordingly. At the same time, signal integrity requirements make the back-drilling process indispensable; as PCB materials iterate from M8 to M9 and even higher grades, traditional processing solutions face bottlenecks in precision and yield, and demand for new process equipment such as ultrafast laser drilling is thereby released. High-layer boards, high-order HDI boards, and advanced packaging substrates are placing increasingly high demands on drilling precision, stub control, back-drilling quality, and inspection capability. Traditional equipment is difficult to satisfy these demands, and the unit price and gross margin of high-end equipment are correspondingly higher. With technologies such as CCD back drilling, 3D drilling and inspection integration, and ultrafast laser drilling, Shenzhen Hans CNC Technology has increased the added value per unit of equipment and also strengthened its bargaining power on orders. From the perspective of its position in the industrial chain, the company is in a segment characterized by high technical barriers, long customer certification cycles, and great difficulty of substitution, which gives it strong performance elasticity during the AI computing power capacity expansion cycle. However, the market is also paying attention to the quarterly pace. According to the breakdown of the performance express report, the companys net profit in the third quarter was approximately RMB 587 million, down about 7% quarter on quarter from RMB 634 million in the second quarter. This change does not mean a reversal of the trend. In the equipment industry, order recognition, delivery pace, and revenue recognition themselves fluctuate, and quarter-on-quarter changes need to be further observed in light of subsequent orders and contracts in hand. But looking at the first three quarters as a whole, the companys revenue and profit have maintained high growth, and profit quality is still in an improving range. Behind the share price pullback In fact, strong performance accompanied by a share price pullback appears somewhat contradictory on the surface, but from the logic of capital market operation it is not surprising. Shenzhen Hans CNC Technologys A-shares experienced a significant rise in the first half of 2026, reaching a intra-year high of RMB 395.36, and then fluctuated downward. Its H-shares also saw a relatively large retracement from highs. Against the backdrop that the share price had already fully reflected AI computing power expectations, valuations had accumulated to a relatively high level, and there were many profit-taking positions, some funds chose to cash out after the performance express report was disclosed, which is a typical good news realized fluctuation. The deeper reason actually lies at the level of pricing logic. Huatai pointed out in a recent research report that since mid-September, the performance divergence of global AI assets has intensified, and the markets focus is shifting from certainty of demand to elasticity of returns. Capital expenditure is no longer regarded as the sole pricing anchor for AI assets. In other words, the capital market no longer grants a high premium simply because a company is in the AI industrial chain, but has begun to examine more carefully whether orders are sustainable, the pace of downstream capital expenditure, whether gross margin can be maintained, and whether valuations have already front-loaded future growth. Shenzhen Hans CNC Technology is in the PCB specialized equipment industry, which has strong cyclical attributes. Equipment orders often lead downstream capacity release, so the market will be more sensitive to its performance in subsequent quarters. However, Citi took a more optimistic view in a research report in early October, believing that the year-on-year growth in monthly revenue of Taiwan peer Taiwan Union Technology was still accelerating, reflecting that the PCB manufacturers capacity expansion boom continues with no sign of slowing. It can be seen that the market has not yet formed a consensus on the duration of the AI capital expenditure cycle. For Shenzhen Hans CNC Technology, what is more worth watching at present is still whether its fundamental trend remains upward. From the perspective of industrial logic, AI computing power construction is not over. Data centers, servers, switches, and high-speed optical modules are still continuously upgrading, and as the core carrier of computing power hardware, PCB has a clear high-endization trend. As long as downstream high-end PCB capacity continues to expand, demand on the equipment side will be supported. As a global leader in PCB equipment, the company has technical and customer advantages in key processes such as drilling, and is also accelerating overseas layout in Southeast Asia and other regions, which is expected to further open up growth space. From the perspective of the companys financial structure, as of the end of the third quarter of 2026, total assets had increased by 81.23% from the beginning of the period, owners equity attributable to shareholders of the listed company had increased by 104.21%, and net assets per share had risen to RMB 25.35. The expansion of asset scale comes partly from the proceeds raised from the H-share issuance, and also reflects the increase in operating assets such as accounts receivable and inventory after the expansion of production and sales scale. For equipment companies, an increase in operating assets during a phase of rapid order growth is a common phenomenon. As delivery and collection progress subsequently, the balance sheet is expected to improve further. Of course, the capital market never prices linearly. An upward fundamental trend does not mean the share price will rise in sync; a short-term share price pullback does not mean the long-term logic has been damaged. Shenzhen Hans CNC Technology is currently at the intersection of high performance growth and valuation rebalancing: on the one hand, demand for high-end PCB equipment driven by AI computing power is being realized; on the other hand, the market is reassessing its growth sustainability and valuation position using stricter standards. This kind of time lag often brings volatility, but for core equipment companies with technical barriers, customer stickiness, and order support, as long as the industrial trend has not changed, the ability to deliver on performance will still be the key to ultimately anchoring value.