According to the Wisdom Financial APP, Sealand has released research reports stating that as 3D printing technology gradually matures, the improvement in processing efficiency, yield of high-quality products, and the release of economies of scale, the cost of 3D printing is expected to further decrease. Currently, 3D printing has formed a complete industry chain, with midstream enterprises in a leading position in the industry chain. The industry is currently in a period of rapid growth, with the scale continuously expanding. The penetration rate in aerospace, consumer electronics, autos, humanoid robots, medical, and other markets will gradually increase, and industrial applications will deepen. The revenue scale of the 3D printing industry is expected to achieve high growth.

The main views of Zhonghai Securities are as follows:

3D printing technology is an additive manufacturing method with unique advantages such as "free manufacturing, mold-free, waste reduction, and inventory reduction," making it an important supplement to traditional processes. 3D printing has two major unique advantages: the ability to rapidly process complex parts without the need for traditional tooling fixtures and multiple processes, achieving "free manufacturing" and shortening the product development cycle; and optimizing manufacturing modes by "mold-free, waste reduction, inventory reduction", with high material utilization rates and achieving cost reduction and efficiency enhancement, making it an important supplement to traditional processing methods. Currently, this technology is widely used in aerospace, autos, military industry, nuclear power, shipbuilding, medical, and many other fields.

There is a wide range of technological routes for 3D printing, with the most widespread industrial application being metal 3D printing, with selective laser melting (SLM) as the mainstream technology.

There are currently seven main types of mainstream technological routes for 3D printing - powder bed fusion, directed energy deposition, stereolithography, binder jetting, material extrusion, material jetting, and sheet lamination, each of which includes different sub-processes; printing materials include four types: metal, inorganic non-metal, organic polymers, and biological materials. Based on the type of technology, parts printed with powder bed fusion technology exhibit good mechanical properties and dimensional accuracy, making it the mainstream additive manufacturing technology in the industrial field. Among them, selective laser melting (SLM) technology has high stability and technological maturity, with outstanding advantages and the widest application. According to printing materials, it can be divided into metal 3D printing and non-metal 3D printing. Metal 3D printing has the deepest industrial application, currently well applied in aerospace, medical, and expanding to consumer markets, especially in the 3C field; non-metal 3D printing has various technological types, covering applications in autos, medical, and cultural and creative industries.

3D printing has formed a complete industry chain, with midstream enterprises in a leading position in the industry chain. The industry is currently in a period of rapid growth, with the scale continuously expanding.

The upstream of the 3d printing industry chain consists of raw materials and components, including 3d printing raw materials, core hardware, and software; the midstream is mainly composed of 3d printing equipment manufacturers, occupying the leading position in the industry chain. According to data from the Huajing Industry Research Institute, in 2021, the combined market share of printing equipment and services accounted for 80% in the global market and 76% in the Chinese market; downstream applications cover multiple fields including aviation, autos, consumer electronics, mold manufacturing, medical health, cultural creativity, and construction. According to statistics from Wohlers Associates, the global additive manufacturing market continues to grow, with a compound growth rate of over 20% from 2013 to 2023. In 2023, the global additive manufacturing industry's sales revenue reached $20.035 billion, an 11.1% year-on-year increase, with the metal additive manufacturing market achieving a 24.4% year-on-year growth.

Aviation, aerospace, and consumer electronics are future important growth markets downstream, the industrial application level of metal 3d printing will further deepen, and the overall space of the 3d printing industry is expected to accelerate opening up.

1) Aviation Market: Currently, the industrial application of metal 3d printing in the aviation market is relatively mature, including the manufacturing of rocket engine parts and rocket components in the aviation field, as well as aircraft engine parts and landing gear manufacturing in the aerospace field. It significantly reduces the production cycle and costs while achieving lightweight products. According to "SpaceX: Starship to Mars-The First 20 Years, 2nd Edition," 40% of the mass of SpaceX's rocket Raptor engines is applied with 3d printing technology, and China's C919 aircraft engine fuel nozzles are also manufactured using 3d printing. It is estimated that SpaceX's rocket engine has an annual demand for about 140-350 3d printing devices, with a demand value of about $0.112-0.28 billion, which is equivalent to about 0.8-2 billion yuan (converted at the exchange rate on October 16, 2024). The total demand for C919 engine 3d printing devices is about 1080 units, with a total demand value of about 3.5 billion yuan, to be delivered within 7 years (2024-2031), and the annual demand for C919 engine 3d printing devices is about 155 units, with an annual value of about 0.494 billion yuan.

2) Consumer Electronics Market: It is an emerging market for downstream applications. "Titanium alloy + 3d printing" helps achieve product lightweighting and thinning, and the cost of raw materials and upstream equipment is gradually decreasing, driving the large-scale application of 3d printing technology in the consumer electronics field. Currently, top manufacturers such as Apple, Huawei, and Xiaomi have started using 3d printing technology, including folding screen mobile phone titanium alloy hinge shaft covers, mobile phone middle frames, and smartwatches. The penetration rate of titanium alloy 3d printing technology in the consumer electronics field is expected to increase. It is estimated that when the penetration rate of 3d printing reaches 40%-50% by 2028, the global market space for folding screen mobile phone titanium alloy hinge shaft covers 3d printing will reach 3.66-4.57 billion yuan, and the Chinese market space will reach 1.71-2.14 billion yuan. The total global market size of the mobile phone middle frame field of 3d printing is estimated to be about 75.6-94.5 billion yuan, and the total market size of the mobile phone middle frame field in China is about 17.4-21.7 billion yuan. These markets will provide significant increments for the 3d printing industry.

Industry ratings and key stock recommendations: Maintain a 'recommended' rating for the 3d printing industry. It is recommended to pay attention to Yanyefen materials (688456.SH) and Golden Orange (688291.SH) in the upstream, to Bright Laser Technologies (688333.SH) and Huashu Gaoke (688433.SH) in the midstream, and to Golden Sun (300606.SZ) in the downstream.

Risk Warning: Risks of key core component dependency on imports; Risks of industrial application in emerging industries or sectors; Risks of intensified market competition; Risks of downstream demand growth in the 3d printing industry falling short of expectations; Errors in models and assumptions in calculations.