HANS CNC initiated its global offering on January 29 and is scheduled to commence trading on the Hong Kong Stock Exchange on February 6. The offering price is set at HKD 95.80 per share. The base offering consists of 50.45 million shares, which can increase to 58.02 million shares if the over-allotment option is fully exercised. This corresponds to an offering size of approximately HKD 4.83 billion to HKD 5.56 billion. Amid the global wave of AI computing power and sustained strong industry demand, this leading company, which holds the top global market share, has achieved performance growth exceeding 160%, and possesses a high-quality customer portfolio, stands out as a notable IPO candidate among recent A-to-H listings, further enhanced by having the largest discount in its cohort. However, potential risks such as fluctuations in industry sentiment, corrections in the high-valuation sector, high raw material cost ratios, and relatively slow accounts receivable turnover require careful investor consideration.
The H-share offering price of HANS CNC represents a high discount of approximately 46.5% compared to its A-share closing price of CNY 159.47 per share on February 3. This discount level is notably attractive compared to historical A-to-H IPOs, providing investors with a cost-effective entry point. Reviewing market performance so far in 2025, high discounts have often correlated with substantial IPO gains: Guoen Technology, which listed on February 4 with a 45.2% issuance discount, achieved a first-day gain of 11.6%, surging as high as 41.1% intraday. Jihong Technology and Junda Technology achieved first-day gains of 39% and 20% with discounts of 50.4% and 48.4%, respectively.
Compared to other A-to-H projects launched around the same time, HANS CNC's 46.5% discount is the largest—higher than Langqi Technology's 44.3% and Guoen Technology's 45.2%, and significantly exceeding the discount levels of leading companies like Muyuan Foods (23.9%) and Dongpeng Beverage (15.5%). This substantial discount provides Hong Kong investors with a significant valuation safety cushion and enhances the project's short-term trading appeal among同期 IPO candidates. However, attention should be paid to potential spillover effects from A-share price volatility on the H-share valuation, and short-term market sentiment shifts could also lead to stock price fluctuations.
The IPO of HANS CNC attracted 10 cornerstone investors (on a consolidated basis), committing a total of USD 310 million, accounting for 50% of the offering size. The cornerstone investor base covers various high-quality investor types, presenting a relatively balanced overall structure. From the industrial side, major customer Shenghong Technology invested USD 60 million for strategic support, and OmniVision invested USD 9.8 million. These deeply entrenched partnerships reflect the high trust the industry chain places in the company's products and create room for further deepening business cooperation. Among foreign investors, sovereign wealth fund GIC invested USD 90 million, while long-term foreign funds Schroders and Morgan Stanley invested USD 75 million and USD 10 million respectively, demonstrating international capital's favor for core upstream assets in the AI industry chain. On the domestic side, renowned private equity firm Hillhouse invested USD 25 million, while long-term institutions like Fullgoal Fund and ICBC Wealth Management each invested USD 10 million. Yuanle Sheng and Wind Sabre, an investment vehicle associated with Chow Tai Fook, also participated. The support from this diverse capital base provides the company with stronger footing for its debut in the Hong Kong market.
Based on 2024 revenue, HANS CNC firmly holds the top position among global specialized PCB production equipment manufacturers, with a global market share of 6.5% and a commanding domestic market share of 10.1%. As a core infrastructure supplier upstream in the value chains of both AI servers and automotive electrification/intelligence, the company is strategically positioned in two high-growth sectors and possesses significant customer资源优势: it serves 80% of the companies in Prismark's 2024 Global Top 100 PCB Enterprises, all companies in the 2024 CPCA Top 100, and thousands of small and medium-sized domestic PCB manufacturers. It maintains deep relationships with industry leaders such as Zhen Ding Technology, Unimicron, Shenghong Technology, and Shennan Circuits. Its innovative solutions have gained wide recognition from renowned manufacturers both domestically and internationally, forming a customer barrier that is difficult to replicate. It is important to note that the company's business is deeply tied to the electronics equipment-related industry. Demand fluctuations in end markets like servers & data storage, automotive electronics, mobile phones, computers, and consumer electronics are directly transmitted to the company through the supply chain, impacting its operations and profitability. Furthermore, the specialized PCB equipment industry is highly competitive and fragmented; the combined market share of the top five manufacturers in China was only about 23.9% in 2024. The company must continuously exert efforts across multiple dimensions including technological innovation, product iteration, production capacity, and customer relationships. Failure to maintain its leading edge could risk dilution of its market share.
From 2022 to 2024 and for the first ten months of 2025, HANS CNC's performance displayed a clear pattern of "bottoming out and accelerating upwards": operating revenues were CNY 2.8 billion, CNY 1.6 billion, CNY 3.3 billion, and CNY 4.3 billion respectively; net profit attributable to owners of the parent company was CNY 430 million, CNY 140 million, CNY 300 million, and CNY 520 million respectively. According to the performance forecast, full-year 2025 net profit attributable to owners is预计 to reach CNY 785 million–CNY 885 million, representing year-on-year growth of 160.64%–193.84%. The market is also confident about subsequent growth, with sell-side institutions forecasting the company's net profit will further climb to CNY 1.23 billion in 2026. The fluctuations and growth in performance are highly correlated with the industry cycle, primarily driven by downstream end-market demand and the capacity expansion pace of PCB manufacturers. In 2023, the global consumer electronics market slumped, with weak demand for end-products like mobile phones and computers, leading directly to downstream PCB manufacturers significantly cutting capital expenditures and reducing equipment procurement demand, which was the main reason for the company's performance adjustment that year. Starting in 2024, the strong emergence of the AI computing power sector, coupled with the bottoming-out recovery of the consumer electronics industry and accelerated upgrades in automotive electronics technology, led to sustained strong demand in the specialized PCB equipment market, driving a powerful rebound in the company's performance. The high industry景气度 has continued into 2025, with increased investment in AI industry chain IT infrastructure and strong enthusiasm for capacity expansion among downstream PCB manufacturers, enabling the company to achieve rapid growth. The growth expectation for 2026 is primarily based on the continued deployment of AI computing power infrastructure investments, which is expected to provide long-term and solid support for PCB equipment demand. However, should the pace of AI computing investment slow down in the future, downstream end-demand fall short of expectations, or industry景气度 decline, the company's performance growth could face pressure.
Behind the explosive业绩 growth, the company also faces certain operational pressures. According to the prospectus, the cost of raw materials and consumables has consistently accounted for over 85% of the cost of sales. Purchase prices are significantly affected by commodity price fluctuations and market supply-demand dynamics, directly impacting profit margins. Simultaneously, trade receivables have grown rapidly with a relatively long collection cycle. As of the end of October 2025, the company's trade receivables and notes receivable had increased to CNY 4.69 billion. The days sales outstanding (DSO) for 2022, 2023, 2024, and the first ten months of 2025 were 254 days, 377 days, 228 days, and 242 days, respectively. Affected by this, the net cash outflow from operating activities for the first ten months of 2025 was CNY 750 million.
From a valuation perspective, the overall valuation of the AI industry chain and PCB equipment sector is currently at a relatively high level, with most peers having already priced in earnings growth expectations for the next 1-2 years. HANS CNC also exhibits "high growth, high valuation" characteristics. Its forecasted P/E ratio for 2025 is 85.8 times, and 58.3 times for 2026. Although not significantly higher than comparable companies, caution is still warranted regarding potential valuation correction pressure across the sector. If the pace of AI computing investment slows, downstream demand disappoints, or industry景气度 experiences a周期性 downturn, the entire sector's valuation framework could face reassessment, putting pressure on the company's stock price.
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