The "A+H" market is poised to welcome a formidable new player. On June 4, Guangdong Dtech Technology Co.,Ltd., the global leader in PCB drill bit sales by volume, once again submitted a listing application to the Hong Kong Stock Exchange, aiming for a main board listing with CITIC Securities and HSBC as joint sponsors.
The company, Guangdong Dtech Technology Co.,Ltd. (SHE: 301377), completed its A-share listing in November 2022. Just over three years later, it has formally embarked on its journey towards a dual primary listing in both the A-share and H-share markets, having previously filed an H-share application in December 2025.
2025 was a particularly remarkable year for its A-share performance, with its stock price surging approximately 594% over the course of the year. As of June 5, 2026, its share price stood at 395.91 yuan, giving the company a total market capitalization exceeding 162.8 billion yuan.
For this global leader in PCB drill bit sales, the most immediate market impression is of a company that has mastered a single, highly specialized product. However, behind this "needle" lies a complex narrative involving precision manufacturing, the AI dividend, and global ambitions.
In recent years, buoyed by strong demand in the dual growth sectors of AI computing power and automotive electronics, Dtech has experienced explosive growth. The funds raised from this Hong Kong listing are specifically earmarked for three key areas: high-end R&D, expansion of domestic and overseas production capacity, and global market development.
Consequently, this Hong Kong IPO is more than just a refinancing exercise. It represents a critical battle for Dtech as it seeks to transition from a "Chinese champion" to a "global leader," and offers capital markets a prime opportunity to assess the true value of this AI infrastructure enabler.
Rapid Profits Versus Tight Cash Flow
Dtech is a leading integrated provider of precision manufacturing solutions, primarily supplying tools, materials, and intelligent equipment for key process stages in the global PCB manufacturing value chain, including drilling, milling/shaping, and other related precision manufacturing processes.
According to Frost & Sullivan, Dtech is the world's largest supplier of drill bits by sales volume. Throughout the track record period, it ranked first globally in drill bit sales volume for 2023, 2024, and 2025, with global market shares of 26.5%, 26.8%, and 29.2%, respectively.
In terms of sales revenue from PCB drill bits, Dtech held the global top spot in 2023, ranked second in 2024, and reclaimed the number one position in 2025, with corresponding global market shares of 21.4%, 20.8%, and 22.9%.
Reviewing its operational data reveals a performance that could indeed be described as rapid. From 2023 to 2025, the company's revenue grew from 1.295 billion yuan to 2.084 billion yuan, achieving a three-year compound annual growth rate of 26.3%. Revenue in 2025 alone surged by 34.2% year-on-year, surpassing the 2 billion yuan threshold for the first time.
Net profit attributable to shareholders climbed steadily from 2023 to reach 434 million yuan in 2025, a year-on-year increase of 91.14%. The growth rate for adjusted net profit exceeded 102.53%, indicating a significant acceleration in profitability.
According to the latest financial report, this positive momentum continued into the first quarter of 2026. Quarterly revenue reached 814 million yuan, with net profit attributable to shareholders hitting 261 million yuan—a staggering 259% year-on-year increase. The gross profit margin, which had previously hovered around 35%, rose to 42.35% and reached a historical high of 53.25% in Q1, directly lifted by the successful rollout of higher-end products.
In terms of business structure, Dtech has established a model anchored by a core business with multiple growth lines. In 2025, precision cutting tools (drill bits and milling cutters) contributed 83.5% of total revenue, forming the performance foundation. Grinding and polishing materials, CNC equipment, and functional film materials accounted for 9.2%, 3.7%, and 3.5% respectively, with these newer segments still in a development phase.
Benefiting from increased demand for HDI boards in AI servers and IC substrates, the sales proportion of ultra-fine drills below 0.2mm and high-end coated drill bits has been rising consistently. In 2025, micro-drills accounted for 29.65% of sales volume and coated drill bits for 39.40%. The growing volume of these high-value-added products has been a core driver behind the margin expansion.
However, there is another side to the coin. In its prospectus, Dtech highlights the risk that "the scale of the Group’s indebtedness and substantial repayment obligations may adversely affect its liquidity position and ability to withstand adverse economic and industry conditions."
As of December 31, 2025, Dtech's total interest-bearing bank borrowings amounted to approximately 586 million yuan. The effective annual interest rates on these borrowings ranged from 2.35% to 3.60% at the end of 2023, 2.35% to 2.65% at the end of 2024, and 2.11% to 2.80% at the end of 2025. Should the company encounter difficulties in generating sufficient cash to service its outstanding debt, its liquidity, business, operational performance, and financial condition could all be adversely affected.
As of the end of 2025, net cash generated from operating activities was 291 million yuan, while cash and cash equivalents on hand were only 271 million yuan. Total current assets stood at 2.751 billion yuan against total current liabilities of 1.654 billion yuan. Based on these figures, Dtech appears to face some degree of short-term liquidity pressure.
This analysis indicates that while profits provide an upward trajectory, cash flow acts as a crucial safety net. The rapid profit growth at Dtech is accompanied by tight cash flow and short-term debt repayment pressures that cannot be overlooked.
Global Sales Leadership Versus a Gap in the High-End Market
Often referred to as the "mother of electronic products," PCBs find applications across a full spectrum of end markets including AI computing, new energy vehicles, communications satellites, and consumer electronics. PCB drill bits, as essential consumables for the PCB drilling process, benefit from stable, inherent demand.
According to the prospectus, the global PCB drill bit market size, measured by sales revenue, follows trends similar to the overall PCB market. It grew from 4.1 billion yuan in 2021 to 6.0 billion yuan in 2025, representing a compound annual growth rate of 10.0%. The global average market price for PCB drill bits was 1.49 yuan per piece in 2023, 1.50 yuan in 2024, and 1.55 yuan in 2025.
Looking ahead, the蓬勃 development of cutting-edge technologies like artificial intelligence, AI servers, and autonomous driving is expected to drive the PCB industry towards higher layer counts, enhanced performance, and greater density. This evolution will significantly boost demand for high-end drill bits. The global PCB drill bit market is projected to grow steadily from 2026 to 2030, reaching an estimated 10 billion yuan by 2030, with a CAGR of 9.6% during that period.
Within this landscape, Dtech holds a prominent position as the undisputed global sales leader. Frost & Sullivan reports that the company is the absolute leader in the global PCB drill bit industry: it held a 29.2% global market share by sales volume in 2025, ranking first; by sales revenue, its 22.9% share also secured the top spot globally. The company is also the global leader in both PCB drill bit production capacity and PCB coated tool capacity.
However, being "number one in sales volume" does not automatically equate to "number one in sales value." The critical point is that in the ultra-high-end segments, such as IC substrate drill bits and super-micro drills (below 0.05mm diameter), Japan's Union Tool still holds pricing power. This indicates that the mid-to-low end market is already a fiercely competitive red ocean, while the true high-profit territory remains in the high-end segment.
Dtech's advantage lies in its "self-developed equipment." Approximately 95% of its production equipment is developed in-house, ranging from high-precision multi-station grinding machines to vacuum coating equipment, achieving full-chain self-research and self-production. This model significantly reduces expansion costs and provides the company with resilience in price wars.
Nevertheless, concerns persist. Competitors like Jinzhou Precision and Japan's Union Tool continue to advance, meaning the competitive landscape remains fluid. Whether Dtech can achieve comprehensive import substitution in the field of drill bits with an aspect ratio exceeding 50:1 will be a key determinant of any further re-rating in its valuation.
Furthermore, Dtech's business structure remains highly concentrated, with around 80% of revenue dependent on PCB precision drill bits. Its functional film materials business is still in a loss-making incubation phase, and the progress of new business initiatives has fallen short of expectations. This high degree of reliance on the PCB industry cycle means the company's performance is highly susceptible to fluctuations in that single sector, indicating a relative weakness in withstanding downturns in its core market.
Considering all the above factors, it is evident that Dtech is undoubtedly a high-quality growth leader in the computing power consumables sector. Benefiting from a favorable industry backdrop and solid company-specific strengths, its Hong Kong listing represents a pivotal step in its journey from a domestic leader to a potential global precision tool powerhouse. In the medium to long term, the dual themes of product高端化 and market globalization could unlock further growth potential, suggesting the stock holds some investment appeal.
However, in the near term, the company faces constraints from four main areas: high debt associated with capacity expansion, a relatively undiversified product mix, slower-than-expected breakthroughs in high-end technology, and exposure to industry cyclicality.
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