Han's Laser Technology (002008.SZ) — What's New from Citi 2026 China Conference: Benefit from AI-Led Technology Upgrades

An insightful takeaway from mgmt. of Han's Laser (HL) on Citi's 2026 China Conference is that different from Apple's previous capex upcycles, which usually last for just one year, mgmt. believes that its equipment upturn could last for longer this time due to continuous technology upgrades for its smartphones or other products to perform well in the AI era. For example, Apple enlarges the size of VC (vapor chamber) heat dissipation plate on iPhone 18 Pro/Pro Max (vs. 17) to optimize the heat dissipation performance, resulting in stronger demand for HL's laser welding equipment. Although the 3D printing equipment opportunity may be lower than mgmt.'s previous expectation, the overall business outlook remains solid with the revenue likely reaching Rmb30bn/40bn in 2026/27E, up ~60%/33% YoY. Citi fine tunes its 2026/27E earnings forecasts but maintains TP unchanged at Rmb147. Maintain Buy. 2026E guidance: IT and PCB equipment revenue could reach Rmb4.5bn and Rmb11.0bn, up 82% and 92% YoY;