Han's Laser posts strong second-quarter results and raises full-year guidance, with initial 3D-printing supply allocation emerging as the next key variable

Overview

The report reviews Han's Laser's 2Q26 results and its August 20 earnings call. The core conclusion is that orders, product mix, and operating scale collectively support growth and margin improvement in 2026—2027, but Goldman Sachs believes the current share price already reflects most of the earnings growth potential and therefore only modestly raises its target price while maintaining its Neutral rating.

Core views

Han's Laser's 2Q26 results were in line with its July 20 pre-announcement and Goldman Sachs' expectations. Quarterly revenue, gross profit, EBIT, and net profit were Rmb8,278mn, Rmb2,940mn, Rmb1,276mn, and Rmb934mn, respectively, representing year-over-year growth of 77%, 108%, 617%, and 188%. Gross margin, operating margin, and net margin reached 36%, 15%, and 11%, respectively, increasing by 5, 12, and 4 percentage points year over year and by 2, 7, and 4 percentage points quarter over quarter. Goldman Sachs believes the margin improvement resulted from a higher contribution from high-margin PCB and consumer electronics equipment, as well as lower expense ratios driven by increased business scale. Orders are the primary basis for the higher full-year revenue guidance. New orders including VAT totaled Rmb21.6bn in 1—7M26, or approximately Rmb19bn excluding VAT; by comparison, total orders on hand at the end of 2025 were Rmb9bn. By business, new orders including VAT for PCB, consumer electronics, new energy, high-power, low-power, and semiconductor equipment were Rmb8.5bn, Rmb4.0bn, Rmb2.6bn, Rmb1.8bn, Rmb1.7bn, and Rmb0.7bn, respectively. The company therefore raised its 2026 sales target from over Rmb26bn to at least Rmb27bn; Goldman Sachs' own forecast is Rmb29.7bn. Consumer electronics equipment revenue reached Rmb1.5bn in 2Q26, up 161% year over year. Growth came from projects involving VC thermal-management components and new camera components: VC-related revenue is expected to rise from Rmb300mn in 2025 to approximately Rmb1.5bn in 2026E, while equipment related to camera components is expected to contribute Rmb600mn—700mn in 2026E. Given strong year-to-date orders, excluding the 3D-printing opportunity, the business's 2026E revenue is more likely to reach the high end of the previous Rmb3.5bn—4bn guidance, versus Rmb2.5bn in 2025; management believes penetration of new components into more electronic-device models could continue to support growth in 2027E. 3D printing is the most important incremental opportunity and source of uncertainty for the consumer electronics business. Management believes there is a high degree of certainty that Apple will use 3D-printing technology in its products in 2027E. The company is engaged in long-term cooperation on multiple products, with sample deliveries and testing currently progressing well. Supply allocations among different suppliers for the first mass-production orders are expected to be announced from late September to early October 2026. Goldman Sachs continues to forecast total consumer electronics equipment revenue of Rmb5.0bn in 2026E and Rmb7.4bn in 2027E, with the supply allocation outcome determining the extent to which the 3D-printing opportunity materializes. PCB equipment revenue rose 113% year over year to Rmb3.0bn in 2Q26. Drivers included capacity expansion and upgrades by leading AI PCB customers, a higher contribution from high-margin solutions, and continued advances in high-value processes. Specific demand involves high-layer-count HDI servers, 800G/1.6T high-speed optical modules using mSAP substrates, as well as 3D back drilling, ultrafast lasers, mechanical through holes, advanced automated optical inspection, and four-wire testing systems. The business's gross margin therefore rose to 36.5%, versus 30.7% in 2Q25 and 33.1% in 1Q26. FPD/semiconductor equipment revenue was Rmb0.6bn in 2Q26, up 108% year over year, mainly driven by demand for domestic substitution; the company targets revenue growth of approximately 30% in 2026E and revenue of approximately Rmb3bn in 2027E. New energy equipment, mainly battery equipment, generated quarterly revenue of Rmb0.9bn, up 41% year over year; the company's 2026E target is Rmb4bn, above Goldman Sachs' Rmb3.7bn forecast. Management expects the business to potentially turn profitable in 2026E and generate net profit of Rmb100mn—200mn, versus a loss of approximately Rmb100mn in 2025. The improvement in the profit structure is reflected not only in gross margin but also in expense ratios. Core net profit grew 434% year over year in 1H26, faster than the 163% growth in reported net profit. The difference mainly reflected an approximately Rmb200mn foreign-exchange loss, versus a Rmb150mn foreign-exchange gain in 1H25; changes in the fair value of securities investments also generated a Rmb171mn loss, versus a Rmb250mn gain in 1H25. Selling and administrative expense ratios declined to 18.1% in 2Q26 and 20.2% in 1H26, down 6 and 7 percentage points year over year, respectively. Management attributed this to economies of scale in large-customer businesses such as PCB and consumer electronics, with internal cost controls also contributing. Optical fiber is a longer-term new business. The Zhangjiagang preform plant plans to obtain land in August 2026, complete construction in April 2027, and begin trial production in July 2027. The company also plans to add two optical-fiber drawing towers for its Nantong subsidiary Linfiber, which currently has three, and is considering capacity expansion in Southeast Asia, Canada, and the United States. Goldman Sachs believes competition in this field is already relatively crowded and that it will not make a significant financial contribution in the near term. The focus is therefore on tracking construction and commissioning milestones rather than incorporating the business into near-term earnings growth. The forecast revisions reflect the difference between short-term non-core losses and medium-term operating improvement. Goldman Sachs lowered its 2026E net profit forecast by 6% due to foreign-exchange and securities-investment fair-value losses, while raising its 2027—2030E net profit forecasts by an average of 2% based on the business outlook and margin improvement. The latest revenue forecasts are Rmb29,742.1mn for 2026E, Rmb34,646.7mn for 2027E, and Rmb38,359.0mn for 2028E, versus previous forecasts of Rmb28,642.2mn, Rmb33,170.5mn, and Rmb36,426.9mn, respectively; EPS forecasts are Rmb2.75, Rmb3.83, and Rmb4.33, respectively. Goldman Sachs raised its 12-month target price from Rmb113 to Rmb115, still based on 30x 2027E P/E. Although the report expects AI-related PCB demand, changes in consumer electronics form factors, and an improved product mix to drive earnings growth in 2026—2027, it judges that the current share price already reflects most of the growth potential and that the risk-reward profile is relatively balanced within its China industrial technology coverage. It therefore maintains its Neutral rating. The report lists a current price of Rmb91.56 and target-price upside of 25.6%.

Analysis framework

Goldman Sachs first compares the quarterly results with the previous pre-announcement and its own forecasts, then assesses revenue visibility using January—July orders, segment revenue, and management guidance. It subsequently analyzes the sources of demand, product mix, and profitability changes in the PCB, consumer electronics, semiconductor, new energy, and optical fiber businesses, while distinguishing core operating profit from non-core items such as foreign-exchange and fair-value changes. It then adjusts its earnings forecasts accordingly and derives a 12-month target price using 2027E P/E.

Methodology notes

• Valuation MethodP/E and PEG Valuation

  2027E P/E Valuation

  The report uses 30x 2027E forecast P/E as its valuation benchmark, converting the updated earnings forecasts into a 12-month target price of Rmb115.

• Competition and Strategy FrameworkEconomies of scale / learning curve

  Operating Leverage

  The report believes that as large-customer businesses such as PCB and consumer electronics scale up, fixed expenses are spread across a larger revenue base, reducing selling and administrative expense ratios and expanding operating margins.

• (Out-of-Vocabulary Method)

  Order-to-Revenue and Segment Profitability Projection

  Starting from new orders and orders on hand, the report combines segment revenue guidance, product mix, customer project progress, and margin changes to project future revenue and net profit.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Han's Laser Technology（002008.SZ）

  AI-related PCB capacity expansion, new consumer electronics projects, domestic semiconductor substitution, and a turnaround in new energy equipment collectively support growth in 2026—2027, but market pricing already reflects most of the potential.

  Strengths

  China's largest laser equipment supplier, with end-market exposure spanning PCB, consumer electronics, lithium batteries, FPD/semiconductors, and general industrial applications; strong orders and improvements in product mix and economies of scale are driving margin expansion.

  Weaknesses

  2026 earnings are affected by foreign-exchange and securities-investment fair-value losses, the new optical fiber business will make only a limited near-term financial contribution, and the 3D-printing supply allocation has not yet been determined.

  Comparison

  Goldman Sachs believes its risk-reward profile is relatively balanced within its China industrial technology coverage.

  Risks

  Slower end-market capital-expenditure growth, customer concentration, and slower-than-expected progress in AI-related new businesses and vertical integration of core components.

Key data

• 2Q26 RevenueRmb8,278mnUp 77% year over year, in line with the pre-announcement and Goldman Sachs' expectations.
• 2Q26 Gross ProfitRmb2,940mnUp 108% year over year.
• 2Q26 EBITRmb1,276mnUp 617% year over year.
• 2Q26 Net ProfitRmb934mnUp 188% year over year.
• 2Q26 MarginsGross margin 36% / operating margin 15% / net margin 11%Up 5, 12, and 4 percentage points year over year and 2, 7, and 4 percentage points quarter over quarter, respectively.
• 1—7M26 New OrdersRmb21.6bn (including VAT)Approximately Rmb19bn excluding VAT; total orders on hand at the end of 2025 were Rmb9bn.
• Company's 2026 Sales GuidanceAt least Rmb27bnPrevious guidance was over Rmb26bn, while Goldman Sachs forecasts Rmb29.7bn.
• 2Q26 Consumer Electronics Equipment RevenueRmb1.5bnUp 161% year over year.
• Consumer Electronics Equipment Revenue Forecast2026E Rmb5.0bn / 2027E Rmb7.4bnGoldman Sachs' forecast includes the 3D-printing opportunity.
• 2Q26 PCB Equipment RevenueRmb3.0bnUp 113% year over year.
• 2Q26 PCB Equipment Gross Margin36.5%30.7% in 2Q25 and 33.1% in 1Q26.
• 2Q26 FPD/Semiconductor Equipment RevenueRmb0.6bnUp 108% year over year; the company targets approximately 30% growth in 2026E and revenue of approximately Rmb3bn in 2027E.
• 2Q26 New Energy Equipment RevenueRmb0.9bnUp 41% year over year; the company's 2026E target is Rmb4bn.
• New Energy Equipment Profit Target2026E net profit of Rmb100mn—200mnNet loss was approximately Rmb100mn in 2025.
• 1H26 Non-Core LossesForeign-exchange loss of approximately Rmb200mn; securities-investment fair-value loss of Rmb171mnThe corresponding figures in 1H25 were a Rmb150mn foreign-exchange gain and a Rmb250mn fair-value gain.
• Earnings Forecast Revisions2026E lowered by 6%; 2027—2030E raised by an average of 2%The near-term reduction reflects non-core losses, while the medium-term increases reflect the business outlook and margin improvement.
• Revenue Forecasts2026E Rmb29,742.1mn / 2027E Rmb34,646.7mn / 2028E Rmb38,359.0mnPrevious forecasts were Rmb28,642.2mn, Rmb33,170.5mn, and Rmb36,426.9mn, respectively.
• EPS Forecasts2026E Rmb2.75 / 2027E Rmb3.83 / 2028E Rmb4.33The previous 2026E forecast was Rmb2.93, while the previous 2027E and 2028E forecasts were Rmb3.77 and Rmb4.27.
• Target PriceRmb115.00Previously Rmb113, based on 30x 2027E P/E.

Impact & implications

The report believes strong orders provide high visibility for 2026 revenue, while a rising contribution from PCB and consumer electronics should support continued margin improvement. Securing a high allocation of the first 3D-printing orders would strengthen the medium-term growth trajectory of consumer electronics equipment; domestic semiconductor substitution and a turnaround in new energy equipment also represent incremental drivers. However, non-core losses in 2026 reduce near-term earnings forecasts, the optical fiber business will make only a limited near-term contribution, and the valuation already reflects most growth expectations. Goldman Sachs therefore maintains its Neutral view.

Risks

• An upside risk is faster-than-expected development of AI-related new businesses.
• An upside risk is faster-than-expected vertical integration of core components.
• A downside risk is slower capital-expenditure growth in end markets.
• A downside risk is high customer concentration.

What to watch

• Monitor the supply allocation for the first mass-production 3D-printing orders, expected to be announced from late September to early October 2026.
• Monitor operating milestones for the optical fiber business, including land acquisition and construction for the Zhangjiagang preform plant, trial production in July 2027, and Linfiber's additional drawing towers.