Luxshare Precision Industry Co Ltd Class A

002475: XSHE (CHN)
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Luxshare Earnings: Few Surprises Other Than Vision Pro Wind Down; Shares Fairly Valued

We maintain our fair value estimate on Luxshare Precision at CNY 40 per share following unsurprising third-quarter results. Luxshare is fairly valued in our view, after rallying more than 20% over hopes of fiscal stimulus in China. Apple's premature wind down of Vision Pro production hampers proliferation of extended reality devices, adding uncertainty to Luxshare's growth prospects in consumer electronics. Its plan to integrate German supplier Leoni AG is also marred by regulatory and financial risks.

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