[Hongtian Co.] - PCB Positions in High-End Electronic Foil Expansion + MSAP Electroplating + LDI Direct-Write Lithography; Optics Layout for GKJ Core Lenses

English summary

Dear leaders, we strongly recommend Hongtian Co., a core PCB equipment supplier and GKJ lens company. The company has multiple business segments; we will report separately. Core businesses include PCB (HVLP copper foil + LDI direct-write lithography + electroplating equipment) and GKJ (lens coating equipment + lens processing). PCB equipment (including HVLP copper foil + electroplating + LDI direct-write lithography): 1) The company's main business is copper foil equipment (domestic leader in foil makers/anode plates, cathode rolls ranked top 3 by market share); HVLP copper foil surface treatment machines are licensed by global leaders. Benefiting from the recovery of lithium battery copper foil demand and accelerated expansion of high-end electronic copper foil, orders in hand are RMB 1.5 billion+, with new orders of RMB 500 million in 26Q1 (20% surface treatment equipment). Based on RMB 200 million capex per 10,000 tons of lithium copper foil and assuming 300,000 tons annual expansion of traditional copper foil, 50% share implies RMB 3 billion revenue and RMB 300 million profit. ...