HANS CNC (03200) has received a "Buy" rating from Citigroup, which set a target price of HK$325. The bank's analysis highlights that the company's primary competitor in the printed circuit board (PCB) mechanical drilling equipment market, Taiwan's Large Technology, saw its July revenue growth accelerate further to 153% year-over-year. This marks the third consecutive month of accelerating revenue growth since May.

While the market has recently been concerned that deteriorating cash flows among hyperscale clients could slow demand for AI PCB equipment, Citigroup believes the opposite is true. The bank argues that AI PCB equipment demand is actually strengthening, and Large Technology's sustained revenue acceleration is expected to help dispel negative sentiment surrounding HANS CNC.

Citigroup also noted that HANS CNC's H-shares are currently trading at approximately 26 times the forecast 2026 P/E ratio, representing a 65% discount to its A-shares. The stock has corrected about 50% from its recent highs. The "Buy" rating and HK$325 target price correspond to a forecast 2027 P/E ratio of about 51 times, which is a 25% discount to the A-share valuation.