According to a research report published by Citi, I recently communicated with Zhou Xiaodong, the board secretary of Dazu CNC. Although ultra-fast laser drilling equipment contributed less to revenue in the first half of 2026 than expected, the company's management is quite confident that demand can be released in the second half of 2027. It is estimated that the total demand for the industry will reach 1,000 units next year. Citi quoted Zhou Xiaodong as saying that CO2 laser drilling equipment may have an opportunity to penetrate the AI PCB supply chain due to tight supply from Mitsubishi Electric, a major supplier in the industry. Zhou Xiaodong also revealed that the contribution of AI PCB equipment to annual revenue will increase from more than 50% in the first half of the year to 60%. Citi believes that Dazu CNC can benefit from strong AIDC demand growth and PCB technology migration to maintain Dazu CNC's H share “buy” rating and target price of HK$189, but is more optimistic about its parent company, Dazu Laser.

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