The Zhitong Finance App learned that Cathay Pacific Haitong released a research report saying that as the global AI computing infrastructure continues to be built, industrial demand is expanding from chip manufacturing to high-speed interconnection, PCB, cooling, and electricity, and the device side is expected to continue to benefit. Domestic equipment manufacturers are moving from single-point equipment verification to platform-based coverage and batch introduction, and domestic substitution is still an important driving force for the industry in the medium to long term. AI capital support continued transmission to the equipment side, and the 2026H1 computing power infrastructure-related sector was further realized. Profit elasticity in the semiconductor equipment, optical module equipment and PCB sectors was outstanding, and demand for liquid cooling and gas turbines remained high.
Cathay Pacific Haitong's main views are as follows:
AI capital development supports continued expansion, and the computing power infrastructure equipment side boom is being realized at an accelerated pace
The 2026H1 AI-related equipment sector maintained a high overall boom. Revenue from the semiconductor equipment, optical module equipment and PCB sectors increased by 26.3%/64.8%/93.5% year on year, respectively, and net profit to mother increased by 89.4%/123.6%/253.4% year on year, respectively. Profit growth rates were significantly faster than revenue. As the global AI computing power infrastructure continues to be built, industrial demand is expanding from chip manufacturing to high-speed interconnection, PCB, cooling, and power, and the device side is expected to continue to benefit.
High-power computing power clusters are being built at an accelerated pace, and liquid cooling and gas turbines have become important increments on the heat dissipation and power supply side
Revenue from the 2026H1 liquid cooling equipment sector was 32.27 billion yuan, up 21.8% year on year. Continued increase in AI server power density drove a further increase in liquid cooling penetration rate; gas turbine sector revenue/net profit to mother increased 9.0%/12.3% year on year respectively. Data center electricity demand compounded by energy transformation to support industry demand, while global core OEMs are relatively tight in production capacity and some orders have been scheduled until 2030, and the tight supply and demand pattern is expected to continue.
High-speed interconnection and high-end PCBs continue to be upgraded, and production expansion and technology iteration are driving equipment demand
2026H1 PCB sector revenue/net profit increased by 93.5%/253.4%, respectively, and accelerated penetration of high-layer, high-grade HDI and fine lines, driving demand and value increases for key equipment such as drilling and exposure; optical module equipment sector revenue/net profit increased by 64.8%/123.6% year-on-year respectively, 800G scale amplification and 1.6T accelerated introduction, which placed higher demands on the accuracy, bandwidth and reliability of mounting, coupling, aging and high-speed test equipment, and resonated with the demand for equipment upgrades and production expansion.
The semiconductor equipment boom continues, and technological upgrades and domestic substitution drive the release of profit flexibility
The 2026H1 semiconductor equipment sector's revenue was 61.38 billion yuan, up 26.3% year on year, and net profit to mother was 14.04 billion yuan, up 89.4% year on year. The profit growth rate was significantly faster than revenue; gross margin/net margin increased to 39.8%/22.3% respectively. AI computing power, HBM, advanced manufacturing processes and advanced packaging continue to drive the capital expenses of fabs. At the same time, domestic equipment manufacturers are moving from single-point equipment verification to platform-based coverage and batch introduction. Domestic substitution is still an important driving force for the industry in the medium to long term.
Risk warning: AI capital expenditure falls short of expectations, product technology iteration and customer verification falls short of expectations, liquid cooling penetration falls short of expectations, overseas trade and supply chain risks, and risk of declining profitability due to increased industry competition.