According to a research report released by Soochow Securities, leading PCB equipment companies achieved revenue and net profit growth of 55% and 124% year-on-year in 2025, respectively. In Q1 2026, contract liabilities surged 104% year-on-year, indicating sustained industry prosperity. Downstream PCB manufacturers are accelerating capital expenditures. Hardware iterations such as Rubin and TPU are driving demand for high-end PCBs. Innovations including ultra-fast laser drilling, high aspect ratio drill bits, and mSAP processes are creating non-linear growth opportunities. The main points of the report are as follows: Performance of the PCB equipment sector grew rapidly in 2025 and Q1 2026, with strong order backlogs. The high growth in 2025 was primarily driven by the intensive expansion of global AI computing infrastructure. The combined revenue of five leading companies—Han's CNC, XINJI Microelectronics, KEGU Precision Machinery, Dongwei Technology, and Dingtai High-tech—reached 11.6 billion yuan, a 55% year-on-year increase. Their combined net profit was 1.855 billion yuan, up 124% year-on-year. Contract liabilities in Q1 2026 grew 104% year-on-year, reflecting continued upward momentum in the sector. Sustained increase in downstream PCB CAPEX supports demand for upstream equipment. Downstream PCB manufacturers are in an expansion phase driven by AI. In Q1 2026, the CAPEX growth rates for Shenghong and Huadian were as high as 390% and 123% year-on-year, respectively. Companies like Shennan and Jingwang are also accelerating their expansion, with CAPEX growth rates reaching 200% and 129% year-on-year in Q1 2026. Hardware iterations are generating incremental demand for PCBs. NVIDIA: (1) The Rubin architecture introduces a Midplane and CPX substrate, creating incremental demand. (2) The newly released LPU cabinet architecture at GTC 2026 increases demand for high-layer-count PCBs. Google: PCBs in TPU servers are primarily high-layer-count boards. Amazon: PCBs in Trainium3 servers are also dominated by high-layer-count boards. The rapid increase in demand for GPUs and ASICs will drive volume growth for PCBs and push the market toward higher-end products. Non-linear growth driven by technological inflation. (1) Ultra-fast laser drilling: To meet high-speed transmission requirements, PCBs are beginning to incorporate M9 Q cloth materials, which accelerate drill bit wear. This drives a non-linear surge in demand for drill bit consumables and spurs the need for ultra-fast laser drilling. (2) High aspect ratio drill bits: Rubin server board thickness has increased to over 6mm, making 40:1 aspect ratio drill bits a critical factor for competitive advantage. (3) mSAP process: 1.6T optical modules require line width and spacing to shrink to 15μm, driving upgrades in exposure, drilling, plating, and forming equipment. (4) Precision solder paste printing: AI servers have extremely high requirements for alignment accuracy, making higher-priced, higher-margin Class III equipment essential. Investment recommendations: Drilling equipment: Han's CNC, Weijia Technology (unlisted). LDI equipment: XINJI Microelectronics. Plating equipment: Dongwei Technology. Solder paste printing equipment: KEGU Precision Machinery. Drill bit sector: Dingtai High-tech, China Tungsten And Hightech New Materials (consolidated subsidiary Jinzhou Precision), Minbao Optoelectronics (acquired Xiamen Zhizhun Precision), New Ruijin (acquired Huilian Electronics), Jame Technology (acquired partial equity in Diamond). Risk warnings: Macroeconomic volatility risks, risks of slower-than-expected expansion by PCB manufacturers, risks of weaker-than-expected demand for computing servers.