Citigroup Initiates Coverage on HANS CNC with Buy Rating, Sets HK$142 Target

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Citigroup has issued a research report initiating coverage on HANS CNC (03200) Hong Kong shares, expressing optimism about the company's position as a leading Chinese manufacturer of PCB drilling equipment. The bank highlighted that HANS CNC stands to benefit from robust demand growth from domestic AI PCB manufacturers such as Shengying Technology. Concurrently, Citigroup assigned a "Buy" rating to the Hong Kong-listed stock with a target price of HK$142. The financial institution raised its profit forecasts for HANS CNC for 2025 and 2026 by 18% and 21%, respectively. It also increased the target price for the company's A-shares (301200.SZ) by approximately 14% to 160 yuan, reflecting preliminary 2025 performance exceeding expectations. However, the bank downgraded its rating on the A-shares from "Buy/High Risk" to "Neutral," noting that growth potential in the mechanical drilling business is largely priced in, while upside for the laser drilling segment remains uncertain. Citigroup views the Hong Kong-listed shares as offering a more attractive risk-reward profile, trading at a roughly 36% discount to the A-share average price over the past month. In the A-share market, the bank expressed a preference for Han's Laser (002008.SZ) over HANS CNC.

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