LUXSHARE-ICT(SZ:002475) Tai Ping Yang·2024-10-23 02:30Investment Rating - The report maintains a "Buy" rating for the company, Luxshare Precision (002475), indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [1][7]. Core Insights - Luxshare Precision is acquiring a 50.1% stake in Leoni AG and 100% of its subsidiary, Leoni Kabel GmbH, for a total transaction value of €320 million. This acquisition aligns with the company's long-term strategy to expand its automotive business globally [1]. - The acquisition of Leoni AG, a global supplier of wire and cable solutions, is expected to enhance Luxshare's competitive edge in the automotive sector by leveraging Leoni's established supply chain and market resources [1][3]. - The report forecasts significant revenue growth for Luxshare, projecting revenues of CNY 266.89 billion in 2024, CNY 310.92 billion in 2025, and CNY 356.37 billion in 2026, with corresponding growth rates of 15.09%, 16.50%, and 14.62% respectively [3][5]. Financial Projections - The report provides detailed financial projections, including: - Revenue (CNY million): 2023A: 231,905; 2024E: 266,892; 2025E: 310,921; 2026E: 356,373 [3][5]. - Net Profit (CNY million): 2023A: 10,953; 2024E: 14,348; 2025E: 18,108; 2026E: 20,204 [3][5]. - Earnings Per Share (EPS): 2024E: 1.99; 2025E: 2.51; 2026E: 2.80 [3][5]. - Price-to-Earnings Ratio (PE): 2024E: 22.39; 2025E: 17.74; 2026E: 15.90 [3][5]. Strategic Positioning - The acquisition is seen as a strategic move to enhance Luxshare's global footprint in the automotive industry, with expectations of improved profitability through operational synergies post-acquisition [1][3]. - The report emphasizes the importance of restructuring and transforming the acquired company to align with Luxshare's operational standards and market strategies [1][3].