Broker: UOB Kay Hian
Date of Report: Tuesday, 26 August 2025
Han’s Laser (002008 CH): Robust 2Q25 Results Signal Solid Momentum for PCB and IT Equipment Businesses
Overview: Han’s Laser Delivers Strong Operating Income and Upbeat Growth Prospects
Han’s Laser Industry Group, a leader in laser-based industrial equipment, has delivered a strong set of results for 2Q25, with adjusted net profit hitting the high-end of guidance and robust top-line growth across its PCB, low-power laser, and lithium-ion battery equipment divisions. The company’s performance underscores its resilience and strategic positioning in the fast-evolving industrial laser and automation sector.
Key highlights:
Share Price: RMB 35.70
Target Price: RMB 39.50 (up from RMB 32.20), reflecting a 10.6% potential upside
Recommendation: BUY (Maintained)
Market Cap: RMB 25.5 billion (approx. USD 3.7 billion)
Major Shareholder: Shenzhen Han’s Industry Co., Ltd. (15.71%)
Bloomberg Ticker: 002008 CH
2Q25 Financial Performance: Solid Top-Line Growth Offsets Margin Pressure
Han’s Laser reported a strong 2Q25, with notable growth in PCB equipment and recovery in low-power laser and lithium-ion battery equipment segments. The company’s operating income surged 44% year-over-year, outpacing revenue growth due to robust demand in key segments.
| Metric |
2Q25 |
1Q25 |
2Q24 |
YoY Change |
QoQ Change |
| Revenue (RMB m) |
4,669 |
2,944 |
3,700 |
+26.2% |
+58.6% |
| Gross Profit (RMB m) |
1,415 |
941 |
1,261 |
+12.3% |
+50.5% |
| Operating Profit (RMB m) |
261 |
(40) |
182 |
+43.6% |
N/A |
| Net Profit (RMB m) |
325 |
163 |
236 |
+37.8% |
+98.6% |
| Core Net Profit (RMB m) |
189 |
72 |
226 |
-16.3% |
+163.1% |
| Gross Margin (%) |
30.3 |
32.0 |
34.1 |
-3.8ppt |
-1.6ppt |
| Operating Margin (%) |
5.6 |
-1.4 |
4.9 |
+0.7ppt |
+6.9ppt |
| Net Margin (%) |
7.0 |
5.6 |
6.4 |
+0.6ppt |
+1.4ppt |
Key takeaways:
The adjusted core net profit of RMB 189 million was at the high end of guidance, though down 16.3% YoY, as profit normalization followed a high base.
Reported net profit surged 37.8% YoY to RMB 325 million, boosted by fair value gains.
Operating income was up 43.6% YoY, fueled by a 26.2% YoY revenue increase.
Gross margin slipped to 30.3% (from 34.1% YoY), primarily due to a greater share of lower-margin PCB (30%) and lithium-ion battery equipment (~20%) in the sales mix.
Segment Analysis: PCB, IT, Lithium-Ion Battery and More
| Segment |
1H25 Revenue (RMB m) |
YoY Change |
Comments |
| PCB Equipment |
2,400 |
+52% |
Gross margin up 3.9ppt YoY to 30.3%; net profit up 83.8% YoY to RMB 264m |
| IT Business (Apple supply chain) |
815 |
+4% |
Contribution typically skewed to 2H; higher margins (40%+) |
| Lithium-Ion Battery Equipment |
923 |
+33% |
Capex resumed at leading battery makers in 2025 |
| General Low-Power Laser Equipment |
1,400 |
+20% |
Driven by cyclical recovery |
| Pan-Semi Equipment |
596 |
-21% |
Weak display panel industry demand |
Other highlights:
PCB equipment’s robust performance was anticipated by market watchers, as its subsidiary Han’s CNC reported strong numbers.
The IT business saw soft performance in 1H, but is expected to rebound in 2H on seasonality, potentially boosting group margins.
Lithium-ion battery equipment outlook remains strong as capital expenditures from leading battery makers have resumed.
General low-power laser equipment continues to benefit from broad cyclical recovery.
Pan-semi equipment segment remains weak due to soft display-panel industry spending.
Forecast Revisions: Upbeat Revenue and Profit Outlook
UOB Kay Hian has revised its forecasts upwards, reflecting stronger revenue expectations, especially for PCB and low-power laser equipment.
| Metric |
2025F (Old) |
2026F (Old) |
2027F (Old) |
2025F (New) |
2026F (New) |
2027F (New) |
Change (%)
2025F |
Change (%)
2026F |
Change (%)
2027F |
| Revenue (RMB m) |
15,569 |
16,296 |
16,876 |
16,526 |
18,218 |
19,560 |
+6.1% |
+11.8% |
+15.9% |
| Gross Profit (RMB m) |
5,253 |
5,695 |
5,954 |
5,522 |
6,290 |
6,832 |
+5.1% |
+10.4% |
+14.7% |
| Operating Profit (RMB m) |
925 |
1,230 |
1,330 |
944 |
1,298 |
1,472 |
+2.1% |
+5.5% |
+10.7% |
| Reported Net Profit (RMB m) |
1,298 |
1,544 |
1,648 |
1,304 |
1,592 |
1,760 |
+0.4% |
+3.1% |
+6.8% |
| Core Net Profit (RMB m) |
1,038 |
1,284 |
1,388 |
1,044 |
1,332 |
1,500 |
+0.6% |
+3.7% |
+8.1% |
| Gross Margin (%) |
33.7 |
34.9 |
35.3 |
33.4 |
34.5 |
34.9 |
-0.3 |
-0.4 |
-0.4 |
| Operating Margin (%) |
5.9 |
7.5 |
7.9 |
5.7 |
7.1 |
7.5 |
-0.2 |
-0.4 |
-0.4 |
| Net Margin (%) |
8.3 |
9.5 |
9.8 |
7.9 |
8.7 |
9.0 |
-0.4 |
-0.7 |
-0.8 |
Key points:
Margins are expected to recover as the IT business picks up in the second half and product mix stabilizes.
Core net profit is forecast at RMB 1,044m/1,332m/1,500m for 2025/2026/2027 respectively.
Valuation, Risks, and Recommendation
The recommendation remains a BUY, with a new target price of RMB 39.50, reflecting a 2025F PE multiple of 26.1x, in line with historical averages.
The valuation rollover now uses 2026F estimates.
Key risks include margin pressures if the IT business fails to rebound, and continued weakness in pan-semi equipment.
Key Financials Snapshot
| Year |
2023 |
2024 |
2025F |
2026F |
2027F |
| Net Turnover (RMB m) |
14,091 |
14,771 |
16,526 |
18,218 |
19,560 |
| EBITDA (RMB m) |
1,053 |
945 |
1,546 |
1,942 |
2,158 |
| Operating Profit (RMB m) |
486 |
435 |
944 |
1,298 |
1,472 |
| Net Profit (Adj., RMB m) |
465 |
445 |
1,044 |
1,332 |
1,500 |
| EPS (Fen) |
78.0 |
161.0 |
123.9 |
151.3 |
167.3 |
| PE (x) |
45.8 |
22.2 |
28.8 |
23.6 |
21.3 |
| Dividend Yield (%) |
0.6 |
1.0 |
0.7 |
0.8 |
0.9 |
| ROE (%) |
3.2 |
2.9 |
6.7 |
8.4 |
8.7 |
Cash Flow and Balance Sheet Highlights
Operating cash flow is expected to swing from RMB 1,126m in 2024 to negative RMB 2,008m in 2025 due to working capital needs, before rebounding in 2026.
Capex is projected at RMB 900m annually for 2025-2027.
Net debt to equity is expected to rise to 15.6% in 2025, stabilizing around 8.3% in subsequent years.
Conclusion: Strong Growth Drivers with Balanced Risks
Han’s Laser remains well positioned to benefit from sustained PCB equipment demand, a cyclical upturn in low-power lasers, and a recovery in lithium-ion battery equipment. While margins are currently compressed by a heavier weighting of lower-margin segments, an expected rebound in the IT business and continued revenue growth should drive profitability higher in the coming quarters. The stock offers an attractive risk-reward profile, backed by upgraded earnings forecasts and a higher target price.
Investors should monitor segment performance, especially the IT and pan-semi equipment businesses, for signals on margin recovery and sustained top-line momentum. The company’s solid fundamentals and sector exposure make it a compelling play in China’s industrial automation and advanced manufacturing landscape.
