LUXSHARE-ICT(SZ:002475)2025-10-31 01:53Summary of Luxshare Precision Industry Co., Ltd. Conference Call Company Overview - Company: Luxshare Precision Industry Co., Ltd. - Ticker: 002475.SZ - Industry: Greater China Technology Hardware - Market Cap: Rmb455.31 billion - Stock Rating: Overweight - Price Target: Rmb55.00 - Current Price (as of Oct 30, 2025): Rmb65.04 - 52-Week Range: Rmb72.20 - Rmb27.11 Key Financial Highlights - 3Q25 Earnings: - Net sales reached Rmb96.4 billion, up 31% YoY - Net income was Rmb4.874 billion, representing a 32% YoY increase - EPS of Rmb0.67, up 35% QoQ and 31% YoY - Gross margin improved to 12.8%, up 0.8ppt QoQ - Operating margin increased to 5.2%, up 0.2ppt QoQ - 2025 Profit Guidance: - Expected net profit between Rmb16.5 billion and Rmb17.2 billion, up 23.59% to 28.59% YoY - 4Q25 net profit projected to rise 17% to 32% YoY, estimated between Rmb5 billion and Rmb5.668 billion - Revenue Projections: - Revenue estimates for 2026 are Rmb400.44 billion and Rmb458.04 billion for 2027 Strategic Initiatives - Business Diversification: - Luxshare is focusing on expanding its presence in AI smart end devices, optical electronics, high-speed connectivity, thermal management, smart autos, and robotics - Dividend Announcement: - The board approved a cash dividend payout of Rmb1.6 for every 10 shares Market Outlook - Initial 2026 Outlook: - Plans for capacity expansion worldwide - Development progress in datacom and automotive sectors - Risks: - Upside risks include better demand for AirPods and faster growth in communications and auto electronics due to 5G deployment - Downside risks involve potential sell-through issues in iPhone or AirPods and margin pressures from increased competition Analyst Insights - Consensus EPS Estimates: - EPS estimates for 2025 are Rmb2.24, Rmb2.72 for 2026, and Rmb3.40 for 2027 - Valuation Methodology: - Valuation based on a residual income model with a cost of equity of 11.1% and a medium-term growth rate of 14% Additional Information - Average Daily Trading Value: Rmb5.004 million - Share Outstanding: 7,001 million shares - P/E Ratio: 21.9 for 2025, projected to decrease to 19.1 by 2027 This summary encapsulates the key points from the conference call, highlighting Luxshare's financial performance, strategic initiatives, market outlook, and analyst insights.