Key takeaway

In 2025, the company's performance met expectations. Revenue grew by 27.00% YoY. PCB and new energy equipment drove steady revenue growth. PCB volume growth drove profitability improvement. Expense ratio declined under scale effect. Non-GAAP net profit increased by 82.28%. Net profit attributable to shareholders of the parent company declined, mainly due to the relatively high base of non-recurring gains and losses in 2024. Looking ahead to 2026, we continue to be optimistic about the downstream capacity expansion demand for PCB and lithium batteries. The related beta will continue to be prosperous in 2026. In addition, pay attention to the verification and volume progress of the company's 3D printing in 3C leading companies. We are optimistic about the start of the company's new growth drivers in consumer electronics.

Event

In 2025, the company achieved revenue of RMB18.759bn, up 27.00% YoY; net profit attributable to shareholders of the parent company was RMB1.19bn, down 29.77% YoY; and non-GAAP net profit attributable to shareholders of the parent company was RMB810mn, up 82.28% YoY.

Looking at 4Q25 alone, the company achieved revenue of RMB6.046bn, up 30.24% YoY; net profit attributable to shareholders of the parent company was RMB326mn, up 21.84% YoY; and non-GAAP net profit attributable to shareholders of the parent company was RMB242mn, up 248.98% YoY.

Quick Take

PCB and new energy equipment drove steady revenue growth, and non-GAAP net profit grew significantly

The company's revenue achieved steady growth, and the revenue of PCB and new energy equipment grew highly. In 2025, revenue was RMB18.759bn, up 27.00% YoY. Benefiting from the continuous strong demand for AI computing power industry chain infrastructure (servers, high-speed switches), superimposed on the technological upgrade and iteration of terminal fields such as consumer electronics, automotive electronics, and industrial control, the market for high value-added multi-layer boards and high multi-layer HDI boards grew rapidly. This drove a significant increase in market demand for PCB and other special processing equipment for intelligent manufacturing. The continuous increase in fixed asset investment in downstream industries promoted a significant YoY growth in the company's sales orders. Revenue achieved rapid growth accordingly.

By business segment, ① information industry equipment: revenue was RMB8.245bn, up 50.28% YoY, accounting for 44%. Specifically, revenue from consumer electronics equipment was RMB2.472bn, up 15.33% YoY, accounting for 13%; revenue from PCB equipment was RMB5.773bn, up 72.68% YoY, accounting for 31%. ② General industrial laser processing equipment: Revenue was RMB6.112bn, up 2.37% YoY, accounting for 33%. ③ New energy equipment: Revenue was RMB2.361bn, up 53.36% YoY, accounting for 13%. Specifically, revenue from lithium battery equipment was RMB2.256bn, up 49.65% YoY, accounting for 12%. ④ Semiconductor equipment (including pan-semiconductor): Revenue was RMB2.041bn, up 15.00% YoY, accounting for 11%.

PCB volume growth drove profitability improvement, and the expense ratio decreased under the scale effect. In terms of profitability, the gross margin in 2025 was 33.28%, up 1.44pcts YoY. Specifically, the gross margin of PCB equipment was 35.12%, up 7.01pcts YoY, and the gross margin of other equipment was 32.46%, down 0.41pct YoY. The increased proportion of PCB drove the improvement of the company's gross margin. From an expense perspective, the company's period expense ratio in 2025 was 26.00%, down 0.95pct YoY. Specifically, the selling, administrative, R&D, and financing expense ratios were 7.84%, 7.11%, 11.01%, and 0.05%, corresponding to YoY changes of -0.14pct, -0.79pct, -1.18pct, and +1.17pct, respectively.

In terms of profitability, in 2025, the company achieved a net profit attributable to shareholders of the parent company of RMB1.19bn, down 29.77% YoY, with a corresponding net margin of 6.34%, down 5.13pcts YoY. The net profit attributable to shareholders of the parent company after extraordinary items was RMB810mn, up 82.28% YoY, with a corresponding net margin of 4.32%, up 1.31pcts YoY. The company's net profit after extraordinary items achieved significant growth, while the net profit attributable to shareholders of the parent company decreased, mainly due to the relatively high base of non-recurring gains and losses in 2024.

3C demand remains robust, expecting volume growth in the company's 3D printing business

Global smartphone shipments hit a new high since 2021, optimistic about the accelerated replacement cycle driven by emerging technologies. According to data from Omdia and multiple authoritative institutions, global smartphone shipments in 2025 reached 1.25 billion to 1.26 billion units, up about 2% YoY, marking the highest level since 2021. Among them, Apple ranked first globally for the third consecutive year with shipments of about 247.8 million units, up 7% YoY, setting a new historical high for annual iPhone shipments. The deep application of emerging technologies has become the core driving force for the upgrade of the consumer electronics industry. As the hardware foundation is gradually consolidated, complete machine and software manufacturers actively promote the improvement of the application ecosystem. Emerging technologies accelerate their implementation in terminal products such as mobile phones and smart wearables, thereby accelerating the replacement cycle and boosting industry chain demand.

The company's 3D printing business has established long-term deep cooperation with 3C leading enterprises, and we expect the company's 3D printing business to scale up. Based on deep accumulation in the high-end manufacturing field, the company's 3D printing business has established long-term deep cooperation with leading enterprises in the 3C consumer electronics field. They focus on cutting-edge directions such as new materials and new structures to carry out joint technological breakthroughs. Relying on its energy distribution characteristics, the 3D printing annular beam technology significantly shortens the scanning path and reduces repetitive processing procedures while ensuring molding quality. This systematically improves printing efficiency and opens up a new, more efficient, controllable, and cost-effective path for 3C consumer electronics manufacturing. The red/green light metal 3D printing equipment adopts a fully self-developed integrated architecture. It can stably print highly reflective materials such as pure copper and copper alloys, meeting the needs for complex components in fields such as 3C electronics, aerospace, and medical dentistry. Relying on its advantages in complex design, lightweighting, and ESG, 3D printing technology is expected to drive a new round of production expansion cycle.

Investment recommendation

We estimate the company's net profit attributable to shareholders of the parent company for 2026-2028 at RMB1.977bn, RMB2.938bn, and RMB4.326bn, representing YoY growth of 66.17%, 48.63%, and 47.2 2%, respectively. This corresponds to PE multiples for 2026-2028 of 45.60x, 30.68x, and 20.84x. We maintain a "Buy" rating.

Risks:

1) Risk of changes in downstream industrial policies: Changes in various downstream industrial policies have a significant impact on related companies. If relevant industrial policies undergo significant adverse changes, it will have a negative impact on the company's operating performance.

2) Risk of losing key technical personnel: In industries such as laser equipment, new energy equipment, and semiconductor equipment, nurturing and retaining key technical talent forms a major source of competitive advantage. Technical professionals in the industry need to gather extensive practical experience in downstream industries to enhance their product research, development, and technological innovation capabilities. As the industry evolves, competition for such talent is expected to intensify. If the company fails to consistently offer effective incentives in terms of salary, benefits, and working conditions, it may lose its appeal to technical talent. Departure of existing core technical personnel could have a significant negative impact on the company's production and operations.

3) Risk of the company's business profitability falling short of expectations: The company has continuously invested in businesses such as lithium batteries, photovoltaics, and semiconductors in recent years. If the market competition landscape of the aforementioned businesses deteriorates, it will have a negative impact on the company's profitability.