Analysis of Dingtek High-Tech's Thailand Plant Capacity Expansion Plan and Effectiveness of Its Global Layout

Based on the collected information, I will provide you with a detailed analysis of Dingtek High-Tech’s Thailand plant capacity expansion plan and the effectiveness of its global layout.

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Dingtek High-Tech (Stock Code: 301377.SZ) is an integrated precision manufacturing solution provider covering tools, materials, and equipment, and has grown into a global leader in specialized cutting tools for PCB manufacturing. According to Frost & Sullivan data, in terms of sales volume, Dingtek High-Tech is the world’s largest drill bit supplier, with a global market share of approximately 19% in PCB drill bit sales, ranking first [1][2].

The company’s product portfolio covers four categories: precision cutting tools, grinding and polishing materials, functional film materials, and intelligent CNC equipment. Its downstream end markets include AI servers, embodied robots, semiconductors and integrated circuits, low-orbit satellite communications, high-end equipment manufacturing, and intelligent vehicles, among others.

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Item	Details
Company Name	Dingtek High-Tech (Thailand) Co., Ltd.
Registration Location	Bangkok, Thailand
Planned Monthly Capacity	15 million drill bits
Current Monthly Capacity	3 million drill bits
Cumulative Investment	No more than RMB 200 million (Approved by the Board of Directors in April 2025)
Capacity Ramp-Up Period	Expected to complete the 15 million-unit capacity layout within 2026

According to the company’s announcement, the Thai subsidiary has completed official mass production and is currently in the capacity ramp-up phase. The plant recently completed process layout adjustments, with a maximum monthly capacity of 15 million units. Subsequent capacity will be gradually released based on market demand and equipment delivery status [1][3].

The Thailand plant is an important overseas production base of the company, undertaking the following strategic tasks:

1. Capacity Expansion
   : Meet the surging demand for high-end PCBs driven by hardware upgrades such as AI servers and high-speed switches
2. Localized Supporting Services
   : Many domestic PCB manufacturers are actively building production bases in Southeast Asia, and the Thailand plant can provide localized supporting services
3. Cost Optimization
   : Setting up a plant in Southeast Asia reduces labor costs and addresses some raw material procurement issues
4. Risk Diversification
   : Diversify geopolitical and supply chain risks through overseas capacity layout

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Period	Overseas Revenue	Revenue Proportion	YoY Growth Rate
Full Year 2024	RMB 92.6655 million	-	+96.95%
First Half of 2025	RMB 78.73 million	8.71%	+124.09%

Data shows that the company’s overseas business is experiencing strong growth: its overseas revenue in the first half of 2025 has approached the full-year 2024 level, and the YoY growth rate has increased from 96.95% to 124.09%, indicating remarkable results in overseas market development [1][4].

In August 2025, the company completed the acquisition of PCB tool assets from Germany’s MPK Kemmer GmbH, a significant milestone in its globalization strategy:

Item	Details
Acquisition Date	Officially completed on August 1, 2025
Target Company History	Has focused on the PCB drill bit field for over 70 years , known as the “originator of drill bits”
Capacity	Monthly capacity of 2 million units , mainly focusing on high-end products
Strategic Value	Introduce MPK’s technological accumulation and German capacity layout
Market Position	Makes the company one of the leading enterprises in PCB cutting tool sales in the European market

Meanwhile, the company established a wholly-owned subsidiary in Germany (Dingtek High-Tech Technology Germany Co., Ltd.). In April 2025, the Board of Directors approved an additional investment of no more than RMB 100 million in the German subsidiary to expand the European market and build a technology exchange and cooperation platform [5][6].

Currently, Dingtek High-Tech has formed a global operation network covering

:

Region	Base	Positioning	Capacity/Scale
Mainland China	Dongguan, Guangdong; Nanyang, Henan	Mature production bases covering the entire industrial chain of tools, materials, and equipment	Monthly capacity of over 100 million units
Southeast Asia	Thai Subsidiary	Core overseas production base	Planned 15 million units/month (in ramp-up phase)
Europe	German Subsidiary (MPK)	R&D and sales of high-end products	2 million units/month

The company plans to further increase investment in regions such as Asia and Europe in the future to continue consolidating its position as the world’s top capacity leader [2][6].

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Global shipments of high-performance servers increased from 13.6 million units in 2020 to 16 million units in 2024, with a compound annual growth rate (CAGR) of 4.2%. Among them,

are expected to grow from 2 million units in 2024 to 5.4 million units in 2029, with a CAGR of as high as [2].

AI servers have significantly higher technical and quality requirements for PCB drill bits:

• High-layer AI server thick boards
  impose higher requirements on breakage rate and hole wall quality
• Customers need to adopt processes such as segmented drilling by length for the drilling procedure
• Micro-drills (0.2mm and below)
  ,
  coated drill bits
  , and
  high aspect ratio drill bits
  see structural growth in demand
• Due to the reduced service life of drill bits in AI boards, the demand for drill bits for AI boards shows incremental growth

In the first half of 2025, the sales proportion of the company’s micro-drills (0.2mm and below) reached

, and the sales proportion of coated drill bits reached , indicating continuous optimization of the product structure [1].

The company has sufficient recent orders, and the delivery of drill bit products is relatively tight. The company plans to accelerate the construction progress of the PCB micro-drill bit fundraising project to meet customer demand. Currently, the company’s monthly capacity for drill bit products has exceeded 100 million units, and it will continue to expand capacity in an orderly manner based on market conditions in the future [1][4].

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Time	Investment Decision	Investment Target	Amount
April 2025	Approved by the Board of Directors	Thai Subsidiary	≤ RMB 200 million
April 2025	Approved by the Board of Directors	German Subsidiary	≤ RMB 100 million
August 2025	Asset Acquisition	Germany’s MPK Kemmer	Strategic Acquisition

According to brokerage research reports, the company’s performance is expected to maintain rapid growth in the next three years:

Indicator	2024A	2025E	2026E	2027E
Operating Revenue (RMB 100 million)	15.80	21.0	29.0	39.0
Net Profit Attributable to Parent Company (RMB 100 million)	2.27	3.9	5.9	8.7
YoY Growth Rate (%)	3.45	73.57	49.86	48.03

The company’s overseas revenue proportion increased from approximately 6% in 2024 to

in the first half of 2025. With the gradual release of capacity in Thailand and Germany, the proportion of overseas revenue is expected to continue to rise [1][4].

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1. Capacity Ramp-Up Falling Short of Expectations
   : It takes time for the Thailand plant to expand capacity from 3 million units to 15 million units, and equipment debugging, personnel training, and yield improvement may all affect the progress
2. Market Competition Risk
   : The PCB cutting tool market is highly competitive, and product price reduction pressure may affect gross profit margin
3. Raw Material Price Fluctuation
   : Fluctuations in prices of raw materials such as tungsten steel affect the company’s cost side
4. Macroeconomic Fluctuation
   : Slowdown in global economic recovery may suppress demand for electronic terminals, thereby affecting investment in the PCB industry
5. Geopolitical Risk
   : Overseas operations involve challenges such as cross-border management, cultural differences, and policy changes

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Dimension	Evaluation	Progress
Capacity Layout	Excellent	Dongguan (100 million units) + Thailand (15 million units) + Germany (2 million units), leading global capacity
Revenue Growth	Excellent	Overseas revenue increased by 124% YoY, with remarkable growth rate
Technology M&A	Excellent	Acquired Germany’s MPK, obtaining 70 years of technological accumulation
Strategic Synergy	Good	Dual-drive from Asia and Europe, providing localized supporting services to customers
Investment Return	To be Observed	In capacity ramp-up phase, ROI yet to be realized

Dingtek High-Tech’s global layout has entered the

:

• Short-term
  : The capacity ramp-up of the Thailand plant will contribute incremental performance, and full production is expected to be achieved in 2026
• Mid-term
  : The completion of MPK integration in Germany will enhance the company’s European market share and brand influence
• Long-term
  : The establishment of the global “R&D – Production – Sales – Services” network will enhance the company’s risk resistance and global competitiveness

Driven by the explosive growth of AI computing power demand, which has spurred structural growth in the high-end PCB market, the company is expected to fully benefit from industry dividends and achieve sustained high-speed performance growth, relying on its top global market position, leading technological advantages, and comprehensive global layout.

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[1] China Post Securities - Research Report on Dingtek High-Tech (301377): New Growth Driven by Superhard M9 CCL PCB (2025-11-05)
https://pdf.dfcfw.com/pdf/H3_AP202511051775634942_1.pdf

[2] Zhitong Finance - Dingtek High-Tech Submits Application to HKEX: The Company is the World’s Largest Drill Bit Supplier (2025-12-01)
https://www.hafoo.com.hk/news/hant/notice/202512013579355345

[3] Sina Finance - Dingtek High-Tech: The Thai Subsidiary’s Planned Monthly Capacity for Drill Bits is 15 Million Units (2025-10-27)
https://finance.sina.com.cn/stock/relnews/cn/2025-10-27/doc-infvhvuz0867824.shtml

[4] Soochow Securities - Research Report on Dingtek High-Tech (301377): Surge in PCB Processing Demand Driven by Computing Power Construction (2025-12-01)
https://pdf.dfcfw.com/pdf/H3_AP202512011791944813_1.pdf

[5] Eastmoney - Announcement of Guangdong Dingtek High-Tech Technology Co., Ltd. on Additional Investment in Overseas Wholly-Owned Subsidiary (2025-04-23)
https://pdf.dfcfw.com/pdf/H2_AN202504221660594432_1.pdf

[6] Huayuan Securities - In-Depth Research Report on Dingtek High-Tech (301377.SZ) (2025-08-14)
https://pdf.dfcfw.com/pdf/H3_AP202508141727182649_1.pdf