1H26 new orders doubled year over year; Citi reiterates Han's Laser Technology as its top pick for AI PCB/Apple equipment

Overview

This report is Citi's review of Han's Laser Technology's (002008.SZ) second version of its 1H26 preliminary results guidance. The key change is not net profit itself, but new order information: 1H26 new orders grew by more than 100% year over year to Rmb16.0bn. Citi believes that after the share price fell approximately 45% from its recent high amid a global AI-sector selloff, the order data should help restore investor confidence and support the company's 2026 revenue target.

Core views

Citi reiterates its Buy rating and views Han's Laser Technology as its top pick in the AI PCB/Apple equipment space. The report believes that 1H26 results demonstrate strong earnings elasticity: 2Q26 net profit may reach Rmb932mn, up 187% year over year and 163% quarter over quarter; excluding foreign-exchange losses and equity revaluation losses, recurring profit may increase 421% year over year to Rmb986mn. 1H26 net profit has already reached 58%/54% of Citi/Bloomberg consensus estimates for full-year 2026 earnings, indicating upside risk to full-year earnings forecasts.

Analysis framework

The report primarily uses a breakdown of the preliminary results, estimates of orders and order backlog, an assessment of the achievability of the full-year revenue target, and a P/E valuation comparison with historical cycles. Using 1H26 new orders of Rmb16.0bn and estimated ending order backlog of no less than Rmb11.5bn, Citi concludes that the target of more than Rmb26.0bn in 2026 revenue has relatively high visibility. On valuation, the current 42.5x 2026E P/E is below the approximately 50x level seen during the 2017 iPhone 10th-anniversary upcycle.

Methodology notes

• Valuation methodsP/E multiple valuation

  P/E valuation

  The Rmb177.0 target price is based on 55x 2027E P/E, referencing the previous peak valuation before 2018 to reflect the supercycle driven by PCB and IT (Apple) equipment demand.

• earnings_reviewpreliminary results analysis

  Preliminary results breakdown

  The report assesses the potential for upward earnings revisions through 1H26 and 2Q26 preliminary profits, revenue growth, recurring profit adjustments, and full-year earnings completion.

• order_backlogorder backlog visibility

  Order backlog visibility

  The report uses new orders and ending order backlog to assess future revenue delivery capacity, concluding that an order backlog of no less than Rmb11.5bn can support the 2026 revenue target.

Asset mapping & comparison

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

• Han's Laser Technology (002008.SZ)

  Primary covered stock; A-share-listed company

  Strengths

  Strong 1H26 order and earnings growth, order backlog supporting the revenue target, strong AI PCB/Apple equipment demand, and valuation below historical upcycle levels.

  Weaknesses

  The share price previously fell approximately 45% from its recent high due to the global AI selloff; earnings and order delivery remain dependent on the sustainability of equipment demand.

  Comparison

  The current 42.5x 2026E P/E is approximately 15% below the roughly 50x level during the 2017 iPhone 10th-anniversary upcycle; the target valuation of 55x 2027E P/E references the 2018 peak.

  Risks

  Apple orders below expectations, intensified competition compressing margins, weaker automobile sales affecting demand for high-power laser equipment, failure of new investment projects, and emerging technologies replacing laser equipment.

• Han's CNC Technology (301200.SZ / 3200.HK)

  Related AI PCB equipment stock, appearing in the report as a related company and risk disclosure subject

  Strengths

  Strong AI PCB equipment demand and relatively high earnings visibility; the report mentions an approximately 81% 2026-27E earnings CAGR.

  Weaknesses

  Higher share-price risk rating; gross margin may be affected by rising component costs.

  Comparison

  The A-share target price of Rmb377 is based on approximately 68x 2027E P/E; the H-share target price of HK$325 is based on approximately 51x 2027E P/E, a 25% discount to the A-share valuation.

  Risks

  AI PCB equipment demand below expectations, GPM below expectations due to rising component costs, and intensified price competition caused by increased equipment supply.

Key data

• 1H26 net profitRmb1.29bnUp 163% year over year, close to the Rmb1.30bn midpoint of the first version of the preliminary results guidance.
• 1H26 new ordersRmb16.0bnUp more than 100% year over year and the key incremental information in the second version of the preliminary results guidance.
• Estimated 1H26 ending order backlogNo less than Rmb11.5bnCiti believes this order backlog will help the company achieve its 2026 revenue target.
• 2026 revenue targetMore than Rmb26.0bnThe report believes that the order backlog can provide support even without new orders in 2H26.
• Estimated 2Q26 net profitRmb932mnUp 187% year over year and 163% quarter over quarter.
• Estimated 2Q26 recurring profitRmb986mnMay increase 421% year over year after excluding foreign-exchange losses and equity revaluation losses.
• Valuation42.5x 2026E P/EApproximately 15% below the roughly 50x P/E during the 2017 upcycle.
• Target priceRmb177.0Based on 55x 2027E P/E.
• Current priceRmb91.720As of 15:00 on July 20, 2026.
• Expected total return93.4%Including a 93.0% expected share-price return and a 0.4% expected dividend yield.

Impact & implications

The report's impact on the stock is positive: the doubling of orders year over year and improved order backlog visibility reduce concerns about fluctuations in AI equipment demand and the sharp share-price retreat; the high earnings completion rate also implies room for upward revisions to Citi's and market consensus estimates. In the short term, the next potential catalyst is an order for 3D printing equipment expected around September 2026.

Risks

• Apple orders below expectations.
• Intensified competition may compress margins.
• Weaker automobile sales may weigh on demand for high-power laser equipment.
• Failure of new investment projects.
• Emerging technologies replacing laser equipment.
• AI PCB equipment demand below expectations.
• Rising component costs causing gross margin to fall below expectations.
• Increased industry equipment supply leading to intensified price competition.

What to watch

• Whether the company secures an order for 3D printing equipment around September 2026.
• Whether new orders in 2H26 can sustain the strength seen in 1H26.
• The pace at which order backlog converts into recognized revenue.
• Whether full-year 2026 revenue exceeds Rmb26.0bn.
• Whether Citi and Bloomberg consensus estimates for 2026 earnings are revised upward.
• Whether demand for AI PCB, Apple equipment, and IT equipment remains strong.