Han’s Laser Earnings: Shares Cheap on EV and Solar Strength, China Rebound in Second Half

We retain our fair value estimate on Han’s Laser at CNY 36 despite disappointing March-quarter results. Our earnings forecasts and fair value estimate are unchanged because we anticipate China’s rebound that started in March to continue for the remainder of the year, and Han’s Laser has a sizable backlog that limits revenue downside. The stock is undervalued, in our view, amid lack of visibility in printed circuit board investments, and fears of pricing pressure in the electric vehicle supply chain. We expect investments by telecom companies will eventually reinvigorate PCB demand and push Han’s Laser’s shares upward.