LUXSHARE-ICT(SZ:002475) Orient Securities·2025-09-17 15:18Investment Rating - The report maintains a "Buy" rating for the company with a target price of 72.00 CNY based on a 32x PE valuation for 2025 [2][5][11]. Core Insights - The company's communication business has achieved significant breakthroughs with overseas clients, indicating that its long-term growth potential is underestimated [1]. - The company is expected to see substantial revenue growth, with projected earnings per share of 2.25 CNY, 3.09 CNY, and 3.84 CNY for 2025, 2026, and 2027 respectively [2][11]. - The report highlights the company's strong performance in the communication and automotive sectors, driven by its integrated capabilities and competitive advantages [10]. Financial Summary - Revenue is projected to grow from 231.91 billion CNY in 2023 to 544.99 billion CNY in 2027, with a compound annual growth rate (CAGR) of 14.5% [4][12]. - Operating profit is expected to increase from 12.86 billion CNY in 2023 to 32.24 billion CNY in 2027, reflecting a CAGR of 24.0% [4][12]. - Net profit attributable to the parent company is forecasted to rise from 10.95 billion CNY in 2023 to 27.88 billion CNY in 2027, with a CAGR of 24.4% [4][12]. - The company's gross margin is projected to stabilize around 10.0% to 10.8% over the forecast period [4][12]. - The net profit margin is expected to improve slightly from 4.7% in 2023 to 5.1% in 2027 [4][12]. Business Growth Drivers - The communication business is expected to accelerate growth, with significant contributions from high-speed electrical connections and other product lines [10]. - The company has developed a comprehensive product matrix in the communication sector, which includes core components and AI-integrated solutions [10]. - The innovative CPC (Co-Packaged Copper) solution is anticipated to become a mainstream technology in high-speed signal transmission, enhancing the company's competitive edge [10].