Model Update to Reflect Higher Revenue and ESOP Expenses, Maintain Buy/Neutral on Han's CNC-H/A

We update our Han's CNC (HC) model post 3Q26 results and the recently announced ESOP. We raise our 2026E earnings forecast by 11% to reflect the stronger-than-expected 9M26 results despite a relatively weak 3Q26 due to major customers' capacity expansions in 4Q26, but trim our 2027/28E earnings estimates slightly by 1%/3% to factor in relevant ESOP expenses. We are positive about HC's development of high-end PCB drilling equipment (CO2 and ultrafast laser driller) and customer diversification, but cut our TP of A/H both by 44% to Rmb180/HK$105, considering 1) HC's lower revenue growth than its main peer Ta Liang (3167.TW) suggesting certain market share loss in AI applications and 2) earnings growth likely peaking out in 2026 despite the AI thesis unchanged. Our pecking order is Han's Laser (002008.SZ) > HC-H (3200.HK) > HC-A (301200.SZ). HC has won 50-60 units of ultrafast laser drilling equipment orders in 2026;