LUXSHARE-ICT(SZ:002475)2025-12-02 02:08Summary of Luxshare Precision Industry Co., Ltd. Conference Call Company Overview - Company: Luxshare Precision Industry Co., Ltd. (002475.SZ) - Industry: Greater China Technology Hardware - Market Cap: Rmb404,490 million - Current Share Price: Rmb57.78 (as of Nov 28, 2025) - Price Target: Rmb77.00, indicating a potential upside of 33% from the current price [4][4][4] Key Points AirPod Shipments - 3Q25 AirPod Shipments: 17.2 million units, representing a 42% increase QoQ and a 9% increase YoY [1][7][7] - The increase in shipments is expected to positively influence Luxshare's share price due to better-than-expected AirPods 4 shipments [7][7] Financial Performance - Revenue Projections: - FY 2025: Rmb335,048 million - FY 2026: Rmb417,920 million - FY 2027: Rmb485,531 million [4][4] - Earnings Per Share (EPS): - FY 2025: Rmb2.33 - FY 2026: Rmb2.85 - FY 2027: Rmb4.05 [4][4] - EBITDA: - FY 2025: Rmb31,957 million - FY 2026: Rmb35,441 million - FY 2027: Rmb45,457 million [4][4] Valuation and Risks - Valuation Methodology: Based on a residual income model with a cost of equity of 11.1%, medium-term growth rate of 15%, and terminal growth rate of 5% [8][8]. - Risks to Upside: - Improved AirPod demand and profitability - Faster growth in communications and auto electronics due to 5G deployment - Better cost control [10][10] - Risks to Downside: - Poor sell-through of iPhone or AirPods - Margin pressure from increased competition - Limited market share gain for new products [10][10] Analyst Ratings - Stock Rating: Overweight, indicating expected total return to exceed the average of the industry coverage universe [4][4][25]. - Industry View: In-Line, suggesting performance is expected to align with the broader market benchmark [4][4][32]. Additional Insights - The report emphasizes the correlation between AirPod shipments and Luxshare's share price performance, suggesting that strong shipment numbers can bolster investor confidence and stock valuation [1][1][7]. - Analysts express a cautious optimism regarding Luxshare's growth trajectory, particularly in light of the anticipated demand for AirPods and related products [7][7]. This summary encapsulates the critical insights from the conference call regarding Luxshare Precision Industry Co., Ltd., focusing on its market performance, financial outlook, and associated risks.