Wang Jeong

Han's Laser (Dazu Laser) reported strong quarterly results with EPS beat driven by high-margin PCB equipment and recovery in secondary battery equipment. The PCB equipment division saw a 150% YoY order surge, with delivery times stretching to end-2027, creating a shortage. CITIC Securities upgraded the stock, raising forward P/E from 49x to 55x on the PCB upcycle and Apple replacement cycle, with a target price implying 14% upside. The company maintains 9% global market share, ranks #1 in China, and has a PEG of 1.6 with a 44% EPS CAGR.

Chinese Apple supplier Yishen Precision is transforming its business model beyond Apple, expanding into AI data center server assembly, European electric vehicle parts, and other high-margin areas. This mix shift should drive margin expansion and a re-rating of the stock from its historical 15x multiple toward 20–30x, as the higher-growth AI and automotive segments deserve a premium valuation.

For long-term pension investors wanting China exposure, the CSI 300 index (large-cap heavy) is safer and better aligned with long-term growth. The startup board (Chuangye) has many unprofitable, high-multiple stocks and large drawdown risk, making a regular investment plan (DCA) into CSI 300 ETFs more attractive.

Auros Technology is a global No.2 ESS battery pure play with strong second-quarter earnings growth (234-282% YoY), expanding GP margin and ASP increases. Unlike peers highly exposed to EV batteries, the company is focused on the fast-growing ESS market, where it already has a 40% share. Compared to CATL, it trades at a severe valuation discount (market cap 13 trillion won vs. 500 trillion won for CATL by 2028 target) and has a consensus target price implying 54% upside. The ESS segment is growing faster and can re-rate the stock as margins expand.