UBS: First Dingtai Hi-Tech (01377) “Buy” rating target price of HK$439

The Zhitong Finance App learned that UBS released a research report stating that it covered Dingtai Hi-Tech (01377) for the first time, giving it a “buy” rating, with a target price of HK$439. The bank said that Dingtai Hi-Tech is the world's largest supplier of PCB drills, with a global market share of 29.2% based on sales volume in 2025. The stock fell 30% from its July high, reflecting market sentiment and the decline in liquidity premiums, as well as delays in Kyber's backboard schedule.

However, the bank believes that the company's investment logic is still complete. As downstream PCB specifications are upgraded and the drill product portfolio is improved, the average selling price has risen. However, Dingtai Hi-Tech has the fastest capacity expansion, extensive customer coverage, and a gradual narrowing of the gap in the high-end sector, and is one of the manufacturers that can best seize upward opportunities.

According to UBS, the current price of Dingtai Hi-Tech H shares corresponds to 40 times the projected price-earnings ratio in 2027, with a discount of about 30% compared to A-shares. Based on forecasting an average compound annual growth rate of 78% in net profit from 2026 to 2028, the bank believes that there is still room for significant upward growth in stock prices.