Citi Initiates Coverage on HANS CNC with Buy Rating, Sets HK$160 Target

Stock News
Apr 21

Citi issued a research report stating that HANS CNC (03200) reported a significant 177% year-on-year increase in first-quarter net profit, reaching 323 million yuan. This performance was attributed to a 104% rise in revenue and improved cost control measures. The bank assigned an H-share "Buy" rating with a target price of HK$160. It noted that the gross margin for the first quarter improved by 3.5 percentage points year-on-year to 33.1%, although it declined from 42.2% in the previous quarter, primarily due to a reduced contribution from AI-related revenue. Management anticipates that as more Chinese PCB manufacturers begin capacity expansion between September and October this year, the revenue contribution from AI products is expected to reach 50% to 60% by 2026, driving a sequential improvement in gross margin in the second half of the year. Citi's order of preference within the AI PCB and Apple equipment sectors is as follows: Han's Laser (002008.SZ), HANS CNC H-shares, and Shenzhen Han'S Cnc Technology Co.,Ltd. (301200) A-shares. The bank assigned a "Neutral" rating to the A-shares with a target price of 186 yuan.

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