Sinolink: Initiate "Buy" rating on CREALITY (03388) and interprets the full-chain layout of "imagine everything" as a trilogy of growth.

Sinolink released a research report stating that it is expected that CREALITY (03388) will have total revenue of 4.25/6.20/8.63 billion yuan from 2026 to 2028, with year-on-year growth of 35.9%/45.9%/39.1%; benefiting from product structure optimization and economies of scale, net profit attributable to shareholders will be 0.17/0.33/0.48 billion yuan, and adjusted net profit will be 0.18/0.34/0.49 billion yuan, with year-on-year growth of +147%/87%/46%. Considering the company as a core enterprise in the consumer-grade 3D printing field, a target price of 39.58 Hong Kong dollars is set for 2026, based on a 4XPS, and the company is given a "buy" rating for the first time. Sinolink's main points are as follows: Event As the consumer-grade 3D printing industry enters an upward inflection point, according to data from Zhaoke Insight, the global market size reached 6 billion US dollars (GMV caliber) in 2025, with a CAGR of 35.2% from 2020 to 2025. With the implementation of AI technology, breakthroughs in China's C-end, and the maturity of multi-color printing, the track has been established with high prosperity. As the global leader in consumer-grade 3D printing, the company, with a 25-year equipment market share of 11.2%, ranks second in the industry and is expected to deeply integrate with industry dividends. The company was listed on the Hong Kong Stock Exchange on May 29, 2026, at an offer price of 18.80 Hong Kong dollars per share, with a net fundraising of approximately 1.272 billion Hong Kong dollars, of which 30% is for research and development, 25% for the construction of the Creativity Cloud and Nexbie platform, and 25% for brand promotion and channel development. In terms of financial performance, the company's revenue in 2025 was 3.127 billion yuan, an increase of 36.65% year-on-year, with overseas revenue contributing approximately 75%, and North America/Europe/China all increasing by +64%/+42%/+22%. The company had a net loss of 0.183 billion yuan in 2025, mainly due to 2.4 billion yuan of non-recurring expenses from the issuance of shares before the listing and special dividends. Adjusted net profit was 0.92 billion yuan, maintaining resilience in core profitability. The company is expected to upgrade from a hardware manufacturer to a hardware entry-leading consumer-grade 3D creative ecosystem platform, following a strategic transition of "hardware entryecosystem extensionplatform monetization." (1) Consumer-grade 3D printing equipment builds a solid foundation. The current main revenue of the company comes from 3D printers. At the end of May 2026, the company released the KliTek new-generation multi-nozzle printing technology, formally entering the first echelon of consumer-grade technology. (2) Non-mainframe hardware reshapes the full-scene creative platform. The 3D printing industry inherently possesses strong creative and exploratory attributes. As players mature, the playability of a single device tends to saturate, and a broader hardware ecosystem and richer software ecosystem become key support for continuous creation. As the only infrastructure platform covering the three major categories of 3D printing, 3D scanning, and laser engraving, the company's RFID consumables chips and CFS system synergistically lift conversion costs, the desktop recycling system M1+R1 reshape the ecosystem playability; the 3D scanner market share in 2025 was 45.3%, ranking first globally, and in 2026, it partnered with OBI Zhongguang to launch an AI visual intelligent platform; the laser engraving machine cooperated with Shenzhen JPT Opto-Electronics to build a joint laboratory, perfecting the "additive + subtractive" manufacturing closed loop. (3) Creativity Cloud and AI-driven service monetization. The company is the only brand in the industry with complete ecological construction capabilities, with a significantly higher level of community activity and operational investment than its peers, and in the long term, the company is expected to commercialize user assets to expand high-margin software services and reshape the profit structure. Risk warning Increased industry competition risk; macroeconomic fluctuations risk; raw material price fluctuations risk; intellectual property risk.