大族激光宣布投资最高25.2亿元光纤及预制棒项目

Han's Laser Technology (002008.SZ) Announced Investment in Optical Fiber and Preform Project of up to CITI’S TAKEHan’s Laser (HL) announced on 25 June that two of its controlling Buy subsidiaries – Hangzhou Yongtong Intelligent Manufacturing Technology (永通智造) and Han’s Laser Technology (Zhangjiagang) (张家港大族) – willjointly invest no more than Rmb2.52bn in the construction of anopticalfiber and preform production project with a total capacity of 60mn kmof optical fibers including hollow-core fibers and 2,000 tons of optical Price (25 Jun 26 15:00)Rmb152.800Target priceRmb177.000Expected share price return15.8%Expected dividend yield0.2%Expected total return16.1%Market CapRmb157,323MUS$23,241M Jamie WangAC+852-2501-2772jamie.ck.wang@citi.com Project details– The investment includes two phases of construction.Phase I:Rmb1.52bn investment for the production capacity of 1,200 tons of optical fiberpreforms and synthetic quartz and 36mn km of optical fibers. The construction periodwill be 12 months.Phase II: Rmb1.0bn investment for the production capacity of 800 Eric Lau+852-2501-2726eric.h.lau@citi.com Optical fiber and preform– Different from standard servers which rely heavily oncopper or lower-grade fiber, AI networks depend onhigh-fiber-countribbon cablesand advanced connectors to prevent dust from ruining the optical connectionbetween thousands of interconnected AI chips. Leading optical fiber manufacturers See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations Bull/Bear: Han’s Laser Technology Han’s Laser TechnologyValuation Our 12-month target price for Han’s Laser of Rmb177.0 is based on 55x 2027E P/E, set at the previous peak P/E in 2018 to reflect its “super cycle” led by stronger demand for PCB and IT (Apple) equipment. Risks Key fundamental downside risks that could prevent the shares from reaching our target price include: 1) fewer-than-expectedApple orders; 2) fiercer competition, which could pressure margins; 3) any weakening of auto sales, which would hurt high-power laser equipment demand; 4) failure of any of the new investment projects; and 5) newly emerging technologies If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside the Appendix A-1 ANALYST CERTIFICATIONThe research analysts primarily responsible for the preparation and content of this research report are either (i) designated by “AC” in the author block or (ii) listed in bold alongside content which is attributable to that analyst. If multiple ACanalysts are designated in the author block, each analyst is certifying with respect to the entire research report other than(a) content attributable to another AC certifying analyst listed in bold alongside the content and (b) views expressed solelywith respect to a specific issuer which are attributable to another AC certifying analyst identified in the price charts orrating history tables for that issuer shown below. Each of these analysts certify, with respect to the sections of the report IMPORTANT DISCLOSURES Citigroup Global Markets Inc. or its affiliates received compensation for products and services other than investment bankingservices from Han's Laser Technology in the past 12 months. Citigroup Global Markets Inc. or its affiliates currently has, or had within the past 12 months, the following as clients, and theservices provided were non-investment-banking, securities-related: Han's Laser Technology. For financial instruments recommended in the Product in which the Firm is not a market maker, the Firm is a liquidity providerin such financial instruments (and any underlying instruments) and may act as principal in connection with transactions insuch instruments. The Firm is a regular issuer of traded financial instruments linked to securities that may have been Unless stated otherwise neither the Research Analyst nor any member of their team has viewed the material operations of theCompanies for which an investment view has been provided within the past 12 months. For important disclosures (including copies of historical disclosures) regarding the companies that are the subject of this CitiResearch product ("the Product"), please contact Citi Research, 388 Greenwich Street, 6th Floor, New York, NY, 10013,Attention: Legal/Compliance [E6WYB6412478]. In addition, the same important disclosures, with the exception of the https://www.citivelocity.com/cvr/eppublic/citi_research_disclosures.Valuation and Risk assessments can be found in thetext of the most recent research note/report regarding the subject company. Pursuant to the Market Abuse Regulation ahistory of all Citi Research recommendations published during the preceding 12-month period can be accessed via Citi Velocity Guide to Citi Research Fundamental Research Investment Ratings:Citi Research stock recommendations include an