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Luxshare Precision Industry Co Ltd Class A - Stock Quote 002475

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Morningstar's Luxshare Precision Industry Co Ltd Class A Stock Analysis

Valuation
Currency in CNY
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Luxshare Results Top Expectations, Profitability May Improve More Slowly, FVE up to CNY 37.50

Phelix Lee Equity Analyst

Analyst Note

| Phelix Lee |

We increase our fair value estimate on Luxshare Precision to CNY 37.50 per share after factoring in faster revenue growth but lower profitability, mostly associated with an updated view on the company’s display module and device assembly operations. Our fair value estimate corresponds to 25.1 times 2023 P/E; lower than the company’s five-year historical average of 35 times. We view Luxshare shares as fairly valued amid fears of macro slowdown with the company managing to grow first quarter of 2022 EPS by 32% year on year.

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Luxshare Precision Industry Co Ltd Class A's Company Profile

Business Description

Luxshare Precision is one of the world’s largest manufacturers of cables and connectors and is a major supplier to Apple, which accounts for almost 70% of sales. Founded in 2004, the company has since expanded production into other faster-growing consumer electronic components, such as speakers, haptic, cameras, PC docks, and wireless charging modules, as well as electronic manufacturing services for Apple’s Watch and AirPods. Of Luxshare’s 2021 sales, 87% is derived from the consumer electronics end market, while the remaining 13% is spread across the computer, communication and automobile verticals. Luxshare employs over 220,000 people and has manufacturing bases in China, India, and Vietnam.

Contact
No.17 Kuiqing Road, Qinghuang Industrial Zone
Dongguan, 523650, China, People's Republic of
T +86 76989089000
Sector Technology
Industry Electronic Components
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2021
Stock Type
Employees 228,152