Yamato initiates "buy" rating on Shenzhen Han's CNC Technology (03200) with a target price of HK$207.

Daiwa Research Institute has issued a research report stating that they have initiated coverage on Shenzhen Han's CNC Technology (03200) with a "buy" rating and a target price of 207 Hong Kong dollars. The firm predicts that with the transformation of the CCD six-axis independent mechanical drilling machine product portfolio and strong demand for AI printed circuit boards (PCBs), the company's profits will experience strong growth, with net profits expected to increase by 69% and 70% in 2026 and 2027 respectively. The firm forecasts that Shenzhen Han's CNC Technology's production share of the CCD six-axis independent mechanical drilling machine will increase from 13% last year to 60% by 2028, with overall drilling sales expected to grow by 97% from 2025 to 2028, reaching 8,639 units. This will drive the average drilling price up by 70% to 1.62 million RMB by 2028, and increase the company's gross profit margin to 41% by 2028.