Citigroup: Shenzhen Hans CNC Technology (03200) saw a further acceleration in revenue growth in July, expected to alleviate negative market sentiment.

Citi released a research report stating that Taiwan's Large Tech is a major competitor to Shenzhen Hans CNC Technology (03200) in the drilling equipment market for printed circuit boards. In July, its revenue growth rate further accelerated to 153% year-on-year, marking the third consecutive month of revenue growth since May. Although the market has recently expressed concerns that the cash flow deterioration of super-scale customers may lead to a slowdown in demand for AI printed circuit board equipment, Citi believes the reality is the opposite. It asserts that demand for AI printed circuit board equipment is actually becoming stronger, and Large Tech's revenue continues to grow at an accelerated pace, which is expected to alleviate negative market sentiment toward Shenzhen Hans CNC Technology. Citi also pointed out that the current H-share price of Shenzhen Hans CNC Technology corresponds to a projected price-to-earnings ratio of about 26 times for 2026, which represents a discount of about 65% compared to A-shares. The stock price has adjusted by about 50% from its recent high, and it has given a "buy" rating with a target price of HKD 325, corresponding to a projected price-to-earnings ratio of about 51 times for 2027, which is about a 25% discount to A-share valuations.