Summary of the Conference Call for Luxshare Precision Company Overview - **Company**: Luxshare Precision - **Industry**: Electronics Manufacturing, specifically in 3C (Computer, Communication, Consumer Electronics) and communication sectors Key Points and Arguments Partnership with OpenAI - Luxshare Precision has partnered with OpenAI to develop a screenless smart speaker, showcasing its manufacturing capabilities and supply chain management recognition by OpenAI [2][4] - This collaboration is expected to help Luxshare transition from a traditional OEM to a technology-leading platform, enhancing product development cycles through technology reuse [2][4] Communication Business Development - The communication business of Luxshare has exceeded expectations, with a broad product layout covering major domestic and international clients, including Google and Amazon [2][5] - Luxshare has entered the GB200 and GB300 projects, providing numerous new solutions, with significant value in harnesses and connectors [2][6] - The company has secured North American orders, indicating substantial future growth potential in the communication sector [3][13] Impact of Apple's Innovation Cycle - The innovation cycle of Apple significantly impacts Luxshare, with strong market performance of the iPhone 17 leading Apple to request a 30%-40% increase in production from major OEMs [7] - Luxshare is expected to benefit from Apple's upcoming innovation cycle, which may include new products like camera headphones and blood glucose monitoring watches by 2027 [7][8] - As a core supplier in Apple's supply chain, Luxshare is positioned to enter a growth phase due to these innovations [7][9] Market Valuation Discussion - There is ongoing debate regarding Luxshare's market valuation, currently perceived to be around 20 times earnings [8][10] - The anticipated innovation cycle from Apple and partnerships with leading companies like OpenAI could accelerate Luxshare's transformation into an AI hardware manufacturer, suggesting a need for reevaluation of its valuation [8][9][12] - The traditional valuation method based on current earnings may not be applicable, as emerging sectors like communication and automotive are expected to grow significantly [13] Changes in Business and Market Image - Since 2023, Luxshare has been transitioning from a pure OEM to a company with unique design capabilities, which has attracted partnerships like that with OpenAI [11] - This shift indicates potential for more collaborations in the future, enhancing Luxshare's market image and business model [11][12] Profit Composition - As of 2025, consumer electronics remain the primary source of profit for Luxshare, but the current valuation based solely on this segment is deemed unreasonable due to the company's broader growth potential [12] Additional Important Insights - The collaboration with OpenAI and the focus on AI technology represent a significant strategic shift for Luxshare, positioning it as a key player in the evolving tech landscape [4][11] - The company's ability to adapt and innovate in response to market demands and technological advancements is crucial for its future success [2][8][9]