Luxshare Precision Industry Co., Ltd. (002475)

Equity Research Report　|　Industries: Consumer Electronics, Communications and Data Centers, Automotive Electronics Precision Manufacturing　|　Report Date: September 13, 2026　|　Data Cutoff: September 11, 2026 closing; September 13, 2026 was a Sunday and the A-share market was closed.

This report was automatically compiled by AI based on publicly available information. It is for reference only and does not constitute investment advice.

1. Executive Summary

Luxshare Precision generated revenue of RMB 174.504 billion in the first half of 2026, up 40.16% year on year, while net profit attributable to shareholders was RMB 7.843 billion, up 18.04%. Revenue growth was significantly faster than profit growth. During the same period, recurring net profit attributable to shareholders grew by approximately 6.47% year on year, while net cash flow from operating activities was negative RMB 2.446 billion, indicating that scale expansion and business-mix upgrades continue to be accompanied by pressure on margins and cash flow.

The company’s growth drivers are expanding from its consumer-electronics core franchise into automotive electronics, communications and data centers. In the first half of 2026, consumer-electronics revenue grew 19.27% year on year, automotive-electronics revenue grew 274.10%, and communications and data-center revenue grew 49.66%. In 2025, automotive electronics and communications and data centers accounted for 11.81% and 7.39% of revenue, respectively, making the business mix more diversified than in 2024.

In 2025, the company generated revenue of RMB 332.344 billion, up 23.64% year on year, and net profit attributable to shareholders of RMB 16.600 billion, up 24.20%, with a gross margin of 11.91%. Gross margins in communications and data centers and automotive electronics were 18.40% and 15.75%, respectively, both higher than consumer electronics at 10.64%. The rising contribution from new businesses has the potential to improve overall profitability, although rapid automotive-electronics expansion, Leoni integration, overseas capacity investment and customer pricing competition continue to constrain margins.

As of September 11, 2026, the company’s share price was RMB 55.39, with a trailing dynamic P/E ratio of approximately 24.08x. Technically, the stock was in a volatile recovery phase following a sharp decline. The share price was close to or below multiple medium- and long-term moving averages. Short-term momentum had improved, but the medium-term trend had not yet fully strengthened. Based on institutional sample forecasts, average net profit attributable to shareholders for 2026–2028 is approximately RMB 21.201 billion, RMB 28.021 billion and RMB 34.808 billion, respectively. The current valuation already incorporates part of the anticipated future growth.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Consumer electronics: Revenue was RMB 264.266 billion in 2025, accounting for 79.52% of total revenue, up 13.37% year on year, with a gross margin of 10.64%. Products cover connectors, cables and harnesses, acoustic components, modules, SiP system-in-package products, AI glasses, AR/VR/XR glasses, smart wearables, smart-home products, routers, drones and complete-device assembly.
• Communications and data centers: Revenue was RMB 24.568 billion in 2025, accounting for 7.39% of total revenue, up 33.81% year on year, with a gross margin of 18.40%. Products cover high-speed copper interconnects, high-speed optical interconnects, data-center thermal management, data-center power supplies, communications-network equipment and products related to complete server systems.
• Automotive electronics: Revenue was RMB 39.255 billion in 2025, accounting for 11.81% of total revenue, up 185.34% year on year, with a gross margin of 15.75%. Products cover high-voltage, low-voltage, high-speed and Ethernet connectors; high- and low-voltage vehicle wiring harnesses; power-battery wiring harnesses; intelligent-driving domain controllers; smart cockpits; millimeter-wave radar; HUDs; EPS; brake-by-wire and steer-by-wire systems.
• Other businesses: Revenue was RMB 4.256 billion in 2025, accounting for 1.28% of total revenue.
• Business-mix changes: Consumer-electronics revenue declined from 86.72% of total revenue in 2024 to 79.52% in 2025; automotive electronics increased from 5.12% to 11.81%; and communications and data centers increased from 6.83% to 7.39%. The business mix has shifted from single-segment dominance by consumer electronics toward a structure consisting of the consumer-electronics core franchise plus automotive electronics and AI data centers as second growth curves.
• Capacity and manufacturing network: The company has not disclosed a unified total-capacity figure. Its manufacturing operations cover mainland China, Vietnam, India, Mexico, Singapore, Japan, the United States and Europe, among other regions, and it has established a global delivery framework through bases in Vietnam, Mexico and Europe.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Luxshare Precision operates in the midstream of the electronics manufacturing value chain. Its business has gradually expanded from connectors and connection cables to components, modules, system integration and complete-device manufacturing, and further into automotive Tier 1 and AI data-center infrastructure.

• Actual procurement includes copper and copper-alloy materials, aluminum and other conductive materials; terminals, connectors, cables and shielding materials; engineering plastics, insulating materials, LCP and other high-performance materials; electronic components, chips, optoelectronic devices and power devices; thermal-management materials, liquid-cooling components and power modules; as well as precision molds, automation equipment and production-line equipment.
• The primary materials for connectors and wiring-harness products include copper, plastics and terminals. Data-center products are more dependent on optoelectronic devices, copper cables, high-speed connectors, thermal-management components and power modules. Automotive operations primarily involve copper, aluminum, cables, connectors, controllers and automotive-electronics components.
• Upstream materials such as copper have certain commodity characteristics and are affected by commodity prices. The company is generally closer to being a price taker on costs, although it can partially offset cost pressure through scale procurement, automation, material substitution, process optimization, vertical integration and yield improvement.
• Industry research indicates that upstream suppliers in the connector industry mainly provide metal and plastic materials. Their bargaining power is generally weaker than that of downstream customers. Specific procurement prices and material shares were not disclosed in the research materials, and this assessment is based primarily on industry research; actual conclusions should be based on the company’s internal operating data.
• In 2025, purchases from the five largest suppliers amounted to RMB 132.001 billion, accounting for 52.97% of total annual purchases. Purchases from the largest supplier amounted to RMB 113.854 billion, accounting for 45.69%. These figures are based on the 2025 annual report.
• The annual report anonymized supplier names, making it impossible to identify the largest supplier based solely on publicly available annual-report information. Suppliers may simultaneously perform customer-designated purchasing, agency procurement or comprehensive supply functions; therefore, concentration should not simply be equated with the risk associated with a single raw-material supplier.
• Downstream customers include consumer-electronics brands and ODM/OEM customers; global cloud-service providers; AI-server and networking-equipment customers; traditional and new-energy vehicle manufacturers and automotive Tier 1 suppliers; as well as communications-equipment manufacturers and customers in operator-related supply chains.
• In 2025, sales to the five largest customers amounted to RMB 216.171 billion, accounting for 65.04% of total annual sales. Sales to the largest customer amounted to RMB 188.381 billion, accounting for 56.68%. These figures are based on the 2025 annual report. Customer names were disclosed anonymously, making it impossible to identify specific customers based solely on the annual report.
• The market commonly views the largest customer as a core overseas consumer-electronics customer. However, the research materials explicitly state that this was not directly confirmed by the company’s annual report and should not be treated as an established fact. Customer-concentration data are primarily sourced from the company’s 2025 annual report; the specific customer structure should be determined by the latest annual report.
• Consumer-electronics customers generally have strong bargaining power. Suppliers are required to accept annual price reductions and meet rapid-iteration, quality-certification and capacity-support requirements. Once a supplier enters a leading customer’s supply chain, certification cycles and switching costs also create a degree of customer stickiness.
• Automotive-electronics customer-certification cycles are long and quality and reliability requirements are high. Automakers and Tier 1 suppliers may compress supplier margins through annual price reductions, platform bidding and project awards. Scale, global delivery and the ability to be introduced into customer platforms are important.
• Communications and data-center customers are concentrated among leading cloud-service providers, server manufacturers and equipment vendors. Product iteration, certification and technical barriers are relatively high, although customer concentration is also high.
• As of December 31, 2025, accounts receivable were RMB 48.439 billion, approximately 14.57% of annual revenue; inventories were RMB 42.333 billion, approximately 12.74%; prepayments were RMB 1.441 billion, approximately 0.43%; accounts payable were RMB 80.911 billion, approximately 24.35%; and contract liabilities were RMB 0.931 billion, approximately 0.28%. The absolute value of accounts payable exceeded accounts receivable and prepayments, indicating that the company has certain payment-term and scale-procurement advantages in supply-chain settlement. However, this does not establish that it has strong bargaining power over all upstream suppliers. Accounts-receivable days were approximately 43.87 days in 2025, compared with 46.5 days disclosed for the first half of 2025. The former figure mainly comes from financial-data aggregation platforms and investor-relations activity records; the annual report did not directly disclose data on the same basis, so source discrepancies exist. In combination with relatively high customer concentration and an overseas-sales share of 85.22%, these figures indicate that collections are generally controllable, although changes in major-customer orders and settlement policies could affect working capital.
• Both upstream suppliers and downstream customers are highly concentrated. In 2025, the five largest suppliers accounted for 52.97% of purchases and the largest supplier accounted for 45.69%; the five largest customers accounted for 65.04% of sales and the largest customer accounted for 56.68%. Supplier and customer names were anonymized in the annual report. These concentration figures are based on the 2025 annual report; the identities of customers and the actual procurement functions performed by suppliers cannot be cross-verified based solely on the public annual report. The latest annual report should be considered authoritative.

The company operates in the midstream of the electronics manufacturing value chain. Historically centered on consumer-electronics connectors and precision assembly, it is now upgrading toward an integrated manufacturing platform covering “components—modules—complete devices—automotive Tier 1—AI data-center infrastructure.” Profit improvement will primarily depend on a higher contribution from automotive electronics and communications and data centers, upgrades toward higher-value products such as high-speed interconnects, optical interconnects, thermal management and power supplies, global capacity coordination, and improvements in manufacturing yield and cost control, rather than on a single raw-material resource or traditional brand premium.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

First-half 2026 data come from the interim report disclosed by the company on August 25, 2026; full-year 2025 data come from the formally disclosed annual report. September 13, 2026 was a non-trading day, so market and valuation data use the September 11, 2026 closing price. Recurring net profit attributable to shareholders in the first half of 2026 was RMB 5.962 billion, up approximately 6.47% year on year; basic EPS was RMB 1.0774.

Revenue growth in the first half of 2026 was significantly faster than profit growth, mainly due to an expansion in the consolidation scope and increased product shipments. Consumer-electronics revenue was RMB 122.476 billion, up 19.27% year on year; automotive-electronics revenue was RMB 32.391 billion, up 274.10%; and communications and data-center revenue was RMB 16.609 billion, up 49.66%. Automotive electronics and communications and data centers grew faster than consumer electronics, and the revenue mix continued to expand toward new businesses. Gross margin was approximately 11.78%, up approximately 0.17 percentage points from the same period in 2025. Finance expenses increased from negative RMB 1.603 billion in the prior-year period to RMB 2.240 billion, net cash flow from operating activities was negative RMB 2.446 billion, and net cash flow from investing activities was negative RMB 29.393 billion. The company guided for 15%–25% year-on-year growth in net profit attributable to shareholders for the first three quarters of 2026.

3.2 Earnings Forecasts

The 2026–2028 net-profit and EPS ranges are aggregated by 10jqka from research reports issued by multiple institutions. Revenue data mainly come from reports by individual institutions or a small number of institutions, including Guohai Securities, Everbright Securities and China Industrial Securities, and therefore represent an “institutional sample range” rather than a strict market-wide consensus forecast. Representative forecasts include: Guohai Securities expects 2026–2028 revenue of RMB 409.418 billion, RMB 466.398 billion and RMB 526.280 billion, respectively, and net profit attributable to shareholders of RMB 21.110 billion, RMB 27.097 billion and RMB 33.456 billion; China Industrial Securities expects revenue of approximately RMB 409.09 billion, RMB 487.46 billion and RMB 572.82 billion, and net profit attributable to shareholders of approximately RMB 21.68 billion, RMB 28.19 billion and RMB 34.62 billion; Guolian Minsheng Securities expects net profit attributable to shareholders of approximately RMB 20.3 billion, RMB 29.2 billion and RMB 37.7 billion.

3.3 Valuation and Institutional Ratings

As of the September 11, 2026 close, the share price was approximately RMB 55.39, total market capitalization was approximately RMB 428.6–430.3 billion, the trailing dynamic P/E ratio was approximately 24.08x, the P/E ratio excluding non-recurring items was approximately 29.50x, and the P/B ratio was approximately 3.76x. Based on institutional consensus EPS, forecast P/E ratios for 2026, 2027 and 2028 are approximately 19.7x, 14.9x and 12.0x, respectively. Based on approximately RMB 21.2 billion of 2026 consensus net profit, the current market capitalization implies a P/E ratio of approximately 20.3x. Target prices of RMB 75.64, RMB 78.82, RMB 80, RMB 87.55, RMB 90 and RMB 106 correspond to potential upside of approximately 36.6%, 42.3%, 44.4%, 58.1%, 62.6% and 91.4%, respectively, relative to the current share price of RMB 55.39. The primary support for the current valuation is the expected profit growth over the next two to three years rather than cheap trailing valuation. The current P/E of approximately 24x is above the approximately 20x 2026 consensus P/E, indicating that the market has already priced in part of the growth expectations. Key uncertainties include exchange-rate fluctuations, the pace of volume ramp-up in AI data centers and optical communications, automotive-electronics integration, consumer-electronics customer concentration, raw-material prices and complete-device business margins. Forecasts, ratings, target prices and valuation calculations are subject to differences in institutional methodologies, report dates and forecasts, and do not represent actual returns.

4. Recent News and Announcements

4.1 Share Repurchase Progress: Approximately 17.6654 Million Shares Repurchased for Nearly RMB 1 Billion

The “Announcement on Share Repurchase Progress” disclosed on September 2, 2026, showed that as of August 31, the company had repurchased 17,665,380 A-shares through its dedicated repurchase securities account via centralized bidding. This represented approximately 0.23% of total share capital and approximately 0.24% of total A-share capital. The cumulative transaction amount was RMB 999,915,944.13, excluding transaction fees; the highest transaction price was RMB 65.00 per share and the lowest was RMB 50.14 per share. Repurchase funds came from the company’s self-raised funds, including special-purpose stock-repurchase loans. The repurchase price did not exceed the RMB 86.66-per-share ceiling specified in the plan. The plan allows for the repurchase of no more than 23 million shares. Repurchased shares are mainly intended for equity incentives or employee stock-ownership plans rather than immediate cancellation, so the immediate impact on total share capital and EPS is limited.

4.2 2026 First Extraordinary General Meeting to Be Held on September 16

On September 10, 2026, the company disclosed the “Indicative Announcement on Convening the 2026 First Extraordinary General Meeting.” The physical meeting will be held at 15:00 on September 16, 2026, and online voting will take place on September 16. The record date is September 9. The meeting is expected to consider proposals to change registered capital and amend the Articles of Association, revise the Administrative Measures for Related-Party Transactions, and register bond issuance. The registered-capital change is mainly related to increases in share capital resulting from the exercise of stock options by incentive-plan participants, conversion of convertible bonds, H-share listing and H-share placement.

4.3 Proposed Registration of Bonds Not Exceeding RMB 25 Billion, Subject to Shareholder Approval

The company proposes to register bonds with a total amount not exceeding RMB 25 billion, including corporate bonds and debt-financing instruments issued in the interbank market by non-financial enterprises. The bonds are primarily intended to meet production, operating and business-development needs, optimize the debt structure and reduce financing costs. The matter will be submitted to the extraordinary general meeting on September 16, 2026. Registration does not mean that the bonds have already been issued, and RMB 25 billion is the upper limit of the registered amount. It should not be directly interpreted as an immediate increase of RMB 25 billion in debt. The actual impact will depend on the final issuance size, interest rate and use of proceeds.

4.4 First Three Quarters of 2026 Earnings Guidance: Net Profit Attributable to Shareholders Expected to Increase 15%–25%

On August 25, 2026, the company disclosed earnings guidance for the first three quarters of 2026. Net profit attributable to shareholders is expected to be RMB 13.25 billion to RMB 14.4 billion for January–September 2026, representing year-on-year growth of 15%–25%. Recurring net profit is expected to be RMB 10.37 billion to RMB 11.72 billion, representing year-on-year growth of 8.63%–22.79%. Growth is primarily related to progress in the three major businesses of consumer electronics, communications and data centers, and automotive electronics, including AI-terminal innovation, high-speed electrical and optical interconnects, thermal and power management, global expansion and synergies from Leoni integration. This earnings guidance is based on preliminary calculations by the finance department and has not been audited by certified public accountants. Final figures will be reported in the 2026 third-quarter report.

4.5 Monthly Report on H-Share Securities Changes: Routine Share-Capital and Securities Disclosure

On September 5, 2026, the company disclosed the monthly report on securities changes by the H-share issuer for the month ended August 31, 2026, together with a revised version of the monthly report for the month ended July 31, 2026. According to the research materials, these documents are primarily routine disclosures concerning share capital and securities changes by a Hong Kong-listed company. No new major operating, merger-and-acquisition or regulatory matters were identified.

4.6 Increase in Senior-Executive Holdings: Two Executives Each Added 20,000 Shares, Both Through Equity Incentives

A third-party announcement database showed that Wu Tiansong increased his holdings by 20,000 shares on September 7, 2026, at RMB 24.85 per share, while board secretary Xiao Yunxi increased her holdings by 20,000 shares on September 9, also at RMB 24.85 per share. Both changes were attributable to equity incentives. They resulted from the exercise of equity incentives or related incentive arrangements and should not simply be interpreted as voluntary open-market purchases by management.

4.7 Block Trade: Institutional Trading Desk Transacted 497,000 Shares

On September 7, 2026, Luxshare Precision recorded a block trade involving 497,000 shares and a transaction value of RMB 27.7972 million at RMB 55.93 per share, equal to the closing price that day. Both the buyer and seller were institutional trading desks. The transaction represented a small proportion of total share capital. Based solely on public information, it is impossible to determine the actual beneficial parties, transaction purpose or directional impact on the subsequent share price.

4.8 Share Pledges: Third-Party Data Show a Pledge Ratio of Approximately 14.07%

The Eastmoney stock calendar showed that as of September 11, 2026, the company’s total share-pledge ratio was approximately 14.07%, involving approximately 1.033 billion pledged shares across 16 pledge transactions. These data come from a third-party market-data and share-pledge database. The present search did not identify the latest official announcement corresponding to each individual pledge for verification, so the data should be used as a risk indicator and not regarded as a complete substitute for the company’s latest announcements. As of September 13, 2026, no announcement was found concerning risks triggered by share pledges, forced liquidation or a change in control.

4.9 Acquisition of Related Wingtech Technology Assets Remains Underway; No New Major Transaction Announcement in September

As of September 13, 2026, no newly disclosed major announcement in September was found concerning the signing, termination or modification of a major acquisition by Luxshare Precision. The company’s previously announced acquisition of Wingtech Technology’s consumer-electronics-related assets and businesses remains an ongoing tracking item. The transaction involves Kunming Wenxun, Huangshi Wentai, Wentai Technology (Shenzhen), Wingtech Group (Hong Kong), and related business assets of Wentai Technology in India. It is currently more appropriate to characterize the matter as a major asset acquisition in progress rather than an M&A event newly occurring in September 2026. Future points to monitor include the final transaction consideration, audit and valuation results, closing progress, profitability of the target assets and integration costs.

4.10 Regulatory and Other Matters: No Major Regulatory Penalty or Policy-Risk Event Identified in September 2026

As of September 13, 2026, no announcement was found indicating that Luxshare Precision had been subject to a formal investigation, administrative penalty, disciplinary action or major regulatory measure by the China Securities Regulatory Commission or the Shenzhen Stock Exchange in September 2026. September announcements mainly concerned repurchase progress, the extraordinary general meeting and the monthly report on H-share securities changes. The proposed registration of bonds, change in registered capital and revision of the Administrative Measures for Related-Party Transactions to be considered at the September 16 extraordinary general meeting relate to corporate governance and financing arrangements and do not constitute regulatory penalties or regulatory-risk events.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of the September 11, 2026 close, Luxshare Precision was at RMB 55.39. Recent price action represented a rebound and recovery following a sharp decline, with the stock still fluctuating around RMB 54–57. MA5, MA10 and MA20 were clustered around RMB 55–55.5. RSI14 was neutral, and MACD indicated marginal short-term momentum recovery. However, the share price remained close to or below MA20, MA50, MA100 and MA200, while MA60 at approximately RMB 60.02 constrained the medium-term rebound. The Bollinger Bands were near the middle with expanding bandwidth, indicating a neutral technical condition. Large-order funds recorded net inflows on September 11, but flows had reversed notably over the preceding sessions, which was not yet sufficient to confirm a sustainable trend.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on closing data as of September 11, 2026 and the historical prices, technical indicators and fund flows contained in the research materials. It does not constitute investment advice or a definitive forecast of future prices.****

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 50%; this weight is a subjective heuristic based on current technical indicators, price positioning and fund flows, not a statistical probability or model backtest): Price range approximately RMB 54.3–58.5. Trigger conditions include continued trading around RMB 55–56, trading value remaining around RMB 4–5.5 billion, no large net inflows or outflows from main funds for two to three consecutive sessions, and no clear one-way movement in the electronics or consumer-electronics sectors. This scenario is consistent with MA5, MA10 and MA20 remaining close together, neutral RSI and Bollinger Bands near the middle.
• Weak downside movement (medium weight, approximately 30%; this weight is a subjective heuristic, not a statistical probability or model backtest): Price range approximately RMB 52.9–54.3. Trigger conditions include a break below RMB 54.3 without a quick recovery, accompanied by trading value expanding to above RMB 5.5–6.0 billion and sustained net outflows from main funds, or broad weakness in the electronics and communications sectors. A further break below RMB 52.9 could shift the short-term structure toward weakness, with the next level to watch around the recent 30-trading-day low near RMB 51.9.
• Strengthening rebound (lower weight, approximately 20%; this weight is a subjective heuristic, not a statistical probability or model backtest): Price range approximately RMB 58.5–61.0. Trigger conditions include an effective breakout above resistance around RMB 58.9, daily trading value reaching above RMB 5.5–6.0 billion, the stock remaining above RMB 58.5 for at least one subsequent session, continued net inflows from extra-large and large orders, and strength in the electronics and consumer-electronics sectors. Only after these conditions are met would the stock have the technical basis to test RMB 60–61; insufficient trading value during the breakout would warrant attention to the risk of a pullback.

③ Fund-Flow and Liquidity Background

Trading value over the latest five trading days was approximately RMB 3.8–5.9 billion, with turnover of approximately 0.94%–1.45% and average turnover of approximately 1.12%. The company’s total market capitalization exceeds RMB 420 billion. Although absolute trading value is high, turnover relative to market capitalization is not, leading the research materials to judge that overall liquidity is good, holdings are relatively stable and short-term trading is not highly crowded. Regarding the shareholder structure, as of June 30, 2026, the ten largest shareholders collectively held approximately 3.559 billion shares, or 48.63% of total share capital. Major holders included controlling shareholder Luxshare Limited, Hong Kong Securities Clearing Company Limited, public funds, insurance capital, sovereign funds and ETFs. Institutional participation was relatively high, rather than the holdings being limited to the controlling family or industrial capital. The number of shareholders was approximately 514,000 as of that date, up from approximately 397,800 on May 29, 2026. The above shareholder-concentration, shareholder-count and institutional-holding data are as of June 30, 2026 or earlier disclosure dates and are subject to quarterly-reporting lags. They cannot directly represent real-time changes in the shareholder base as of September 11, 2026; real-time data are unavailable or uncertain. In practice, recent trading value, turnover and large-order fund flows should be considered together. Current holding conditions should not be inferred solely from lagged shareholder data.

A volume-based confirmation signal to monitor is the following: if daily trading value expands to above RMB 5.5–6.0 billion for several consecutive sessions during the coming week, while the share price moves above approximately RMB 58.9 and maintains its closing level, this could be viewed as confirmation by funds of a breakout. If trading value falls below RMB 4 billion and the share price breaks below RMB 54.3, it would indicate weak short-term support.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the moving-average cluster around RMB 55 can provide effective support; this is a technical observation framework, not a trading instruction.
• Observe whether RMB 54.3 is effectively breached; if so, pay further attention to the strong-support zone at RMB 52.9–53.5. This is an observation framework, not a trading instruction.
• Observe whether the resistance zone at RMB 58.5–59.0 can be broken with expanding trading value, and whether trading value reaches above RMB 5.5–6.0 billion. This is an observation framework, not a trading instruction.
• Observe whether main funds shift from a single-session net inflow to net inflows for two to three consecutive sessions. This is an observation framework, not a trading instruction.

The above scenario analysis is based on closing data as of September 11, 2026 and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news flow, fund flows, broader market conditions and other factors. Technical indicators themselves have lagging characteristics and limitations. This analysis does not guarantee future actual performance and does not constitute a buy or sell recommendation. Investors should independently assess the situation based on the latest market information and bear investment risks themselves.

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

Connectors are midstream components in the electronics, automotive and communications value chains, serving as basic components for electrical, signal and data transmission inside equipment. Consumer-electronics precision manufacturing centers on customer certification, vertical integration, large-scale manufacturing and global delivery. Luxshare Precision is simultaneously positioned in automotive electronics and communications and data centers, spanning multiple subsectors including connectors, precision manufacturing, automotive wiring harnesses and AI data-center infrastructure.

6.2 Competitive Landscape

• Competition is intense in low-end and standardized connector products, where price and scale are the primary factors. High-speed, high-frequency, high-voltage, automotive-grade, liquid-cooling, power and optoelectronic-interconnect products have higher technical barriers.
• Downstream customer-certification cycles are long. Entry into the supply chains of leading customers creates a degree of customer stickiness, but customer concentration is generally high across the industry, leaving suppliers vulnerable to changes in major-customer pricing, orders and technology roadmaps.
• The global connector market has long included TE Connectivity, Amphenol, Molex, Hirose Electric and Yazaki, among others. Chinese companies are increasing their share in automotive, communications, consumer electronics and data centers.
• Core competitive factors in consumer-electronics precision manufacturing include customer certification and long-term relationships, integrated delivery from components to complete devices, large-scale manufacturing, automation, yield and cost control, global capacity, and R&D capabilities for emerging terminals such as AI glasses, wearables, acoustic products and structural components.
• Automotive electronics is expanding from traditional wiring harnesses and connectors into high-voltage connections, smart cockpits, intelligent driving, domain controllers, millimeter-wave radar and intelligent chassis systems. Core barriers include automotive-grade quality certification, platform awards from automakers, localized global production, R&D in high-voltage, high-speed and intelligent-control products, and long-term stable supply capabilities.
• Through the completion and integration of Leoni-related assets, Luxshare obtained global automotive wiring-harness customers and manufacturing networks. The strategic significance is greater than the short-term revenue contribution, although integration costs, overseas plant profitability and pricing competition in the automotive industry still require monitoring.
• Assessments of the connector-industry competitive landscape and market shares are based primarily on industry research. The research materials do not provide company market shares, global rankings or market shares for specific products that have been cross-verified by authoritative third parties; therefore, no definitive statements are made regarding such data.

6.3 Key Competitors

Compared with Goertek, Luxshare places greater emphasis on connectors, wiring harnesses, structural components, system integration, automotive electronics and its global manufacturing network. Compared with China Aviation Optical-Electrical, Luxshare is stronger in large-scale consumer-electronics manufacturing and system-level precision manufacturing, while China Aviation Optical-Electrical has greater advantages in defense, aerospace and high-reliability connectors. Compared with Everwin Precision, Luxshare has greater business scale, customer coverage, complete-device integration and global manufacturing capabilities. Compared with Foxconn Industrial Internet and the Hon Hai system, Luxshare is smaller overall in global scale but has stronger vertical integration in connectors, precision components, automotive electronics and certain high-end customer products. Compared with automotive wiring-harness companies such as Derun Electronics and Huaguang Auto Wire Harness, Luxshare has a broader business scope and is using Leoni to build a global automotive wiring-harness customer base and manufacturing network.

7. Risk Factors

• High customer concentration: In 2025, sales to the five largest customers accounted for 65.04% of total annual sales, while the largest customer accounted for 56.68%. Consumer-electronics, communications and data-center customers generally have strong bargaining power. Changes in orders, product cycles, pricing policies or settlement arrangements at core customers could materially affect revenue, margins and working capital.
• High supplier concentration: In 2025, purchases from the five largest suppliers accounted for 52.97%, while the largest supplier accounted for 45.69%. Although the annual report did not disclose supplier identities and suppliers may perform customer-designated purchasing, agency procurement or comprehensive supply functions, changes in concentrated procurement relationships could still affect key materials, electronic components and production security.
• Automotive-electronics integration risk: Automotive-electronics revenue increased 185.34% year on year in 2025 and 274.10% in the first half of 2026, while the company continues to integrate Leoni-related assets. If overseas plant profitability, customer synergies, project introduction or integration efficiency fall short of expectations, integration costs could rise and automotive-business margins could be dragged down.
• Cash-flow and capital-expenditure pressure: In the first half of 2026, net cash flow from operating activities was negative RMB 2.446 billion, net cash flow from investing activities was negative RMB 29.393 billion, and finance expenses increased from negative RMB 1.603 billion in the prior-year period to RMB 2.240 billion. Continued business expansion, global capacity construction and new-project investment could further increase financing and working-capital pressure.
• Profit growth below revenue growth: In the first half of 2026, revenue grew 40.16% year on year, net profit attributable to shareholders grew 18.04%, and recurring net profit attributable to shareholders grew approximately 6.47%. First-half gross margin was approximately 11.78%. If consumer-electronics pricing competition, rapid automotive-business expansion or pressure on complete-device margins continues, revenue growth may not translate into equivalent profit growth.
• Overseas-operating and foreign-exchange risk: Overseas sales accounted for 85.22% of revenue in 2025, and the manufacturing network covers Vietnam, India, Mexico, Singapore, Japan, the United States and Europe. Exchange-rate fluctuations, overseas operating costs, cross-regional supply-chain coordination and changes in local factory operations could affect translated revenue, cost control and overall profitability.
• Raw-material price risk: The company procures copper and copper alloys, aluminum, plastics, electronic components, optoelectronic devices, thermal-management materials and power modules, among others. Materials such as copper have certain commodity characteristics, and the company is generally closer to being a cost taker. If raw-material prices rise and customer repricing or cost pass-through is delayed, gross margin could be compressed.
• Uncertainty in financing and asset integration: The company proposes to register bonds of up to RMB 25 billion, but the registered amount does not equal the actual issuance size. Meanwhile, the acquisition of Wingtech Technology-related consumer-electronics assets remains underway. The final issuance size, financing costs, transaction consideration, closing progress, target-asset profitability and integration costs could all affect the balance-sheet structure and future performance.
• Valuation and technical volatility risk: As of September 11, 2026, the share price was RMB 55.39 and the dynamic P/E ratio was approximately 24.08x, above the approximately 20x 2026 consensus P/E. The market has already priced in part of the growth expectations. Technically, the share price remains constrained by MA50, MA100, MA200 and MA60 at approximately RMB 60.02. If earnings delivery or new-business volume ramp-up falls short of expectations, valuation and share price could be volatile.

8. Conclusion and Outlook

The company’s core growth thesis lies in the scaled delivery capabilities of its integrated precision-manufacturing platform and its expansion from consumer-electronics components and complete-device manufacturing into automotive Tier 1 and AI data-center infrastructure. Automotive electronics, optical and copper high-speed interconnects, thermal management, power management and the global manufacturing network are expected to continue improving the revenue mix. Share repurchases, equity incentives and the proposed bond registration also demonstrate support for long-term business development and funding arrangements.

Future earnings elasticity will depend on the volume ramp-up of automotive electronics and communications and data centers, Leoni integration synergies, progress in the acquisition of Wingtech Technology-related assets, and the extent to which higher-value products improve consolidated gross margin. The company expects net profit attributable to shareholders to increase 15%–25% year on year in the first three quarters of 2026. However, recurring-profit growth in the first half was below revenue growth, while rising finance expenses and negative operating cash flow indicate that the quality of growth still requires ongoing validation.

The company also faces uncertainties related to high consumer-electronics customer concentration, a high proportion of overseas revenue and manufacturing, raw-material and exchange-rate fluctuations, automotive-electronics integration and the increasing complexity of global delivery. Going forward, key issues to monitor include whether new-business growth can translate into improved profit and cash flow, changes in customer orders and settlement policies, the actual issuance size and use of proceeds following bond registration, and whether the share price can absorb the growth expectations embedded in the current valuation.

Data Sources

• https://static.cninfo.com.cn/finalpage/2026-04-15/1225104908.PDF
• 〖Industry Deep Dive〗Insights 2025: Competitive Landscape and Market Share of China’s Connector Industry (Including Market Concentration and Corporate Competitiveness) — Industry Research Report - Qianzhan
• Luxshare Precision (002475) Financial Indicators — Sina Finance
• Luxshare Precision Industry Co., Ltd.
• Goertek Co., Ltd. 2025 Annual Report
• China Aviation Optical-Electrical Technology Co., Ltd. 2025 Annual Report
• Shenzhen Everwin Precision Technology Co., Ltd. 2025 Annual Report
• Luxshare Precision (002475): 2026 Interim Report — Sina Finance
• Luxshare Precision (002475): ALPHA Emerges Amid FX Headwinds; AI Computing and Edge Businesses Approach an Inflection Point — Sina Finance
• Luxshare Precision (002475): 2025 Annual Report Summary — Sina Finance
• Luxshare Precision (002475) Earnings Forecasts — F10 — 10jqka
• Luxshare Precision (002475): 2026Q1 Results in Line with Guidance; Consumer Electronics, Automotive and Communications Expected to Grow in Multiple Areas — Sina Finance
• https://igu888.com/ylyc/002475.html?utm_source=openai
• Luxshare Precision (002475) Earnings Forecasts — F10 — 10jqka
• Institutional Ratings | Two Institutions Update Luxshare Precision Ratings
• Luxshare Precision (002475) Analyst Consensus — Market Sentiment — Investing.com
• Luxshare Precision (002475) 2026 Interim-Report Review: High-Quality Growth Maintained in 26H1; Optical and Copper High-Speed Interconnects Accelerate — Sina Finance
• Luxshare Precision (002475): Core Global Precision-Manufacturing Supplier; AI Cloud and Edge Growth Accelerates — Sina Finance
• Goldman Sachs — Luxshare Precision (002475.SZ): Expansion in Data Centers and Automotive Electronics; Earnings Forecast and Target Price Raised — Sina Finance
• First-Half Net Profit Up 18% but Stock Retreats After Rising; Bull-Bear Divergence Intensifies at RMB 57.62 — Phoenix Finance
• Single-Stock Research
• Luxshare Precision (002475): 2026 Interim Report Summary — Sina Finance
• Luxshare Precision: 17.6654 Million Shares Repurchased Using Total Funds of RMB 1 Billion — Eastmoney
• Luxshare Precision (002475) Latest Developments — F10 — 10jqka
• Luxshare Precision (002475): Indicative Announcement on Convening the 2026 First Extraordinary General Meeting — Sina Finance
• Stock Code: 002475  Stock Abbreviation: Luxshare Precision  Announcement No.: 2026-093
• Luxshare Precision (002475) Trading Alerts — Stockstar
• https://static.cninfo.com.cn/finalpage/2026-08-25/1225500281.PDF
• Luxshare Precision (002475) Company Announcements — Sina Finance
• Luxshare Precision (002475) Corporate Events — F10 — 10jqka
• Block Trade: Luxshare Precision Traded RMB 27.7972 Million (September 7) — Eastmoney
• Luxshare Precision — Stock Calendar — Eastmoney Data Channel
• Luxshare Precision (002475): 2026 Interim Report — Sina Finance
• Luxshare Precision (002475) Stock Quote and Market Overview — CFi.cn
• Luxshare Precision (002475) — Historical Trading Data | Dabanke
• Luxshare Precision Industry Co Ltd Stock Price Today | SZ: 002475 Live — Investing.com
• Luxshare Precision (002475) Technical Analysis, Forecast and Trading Suggestions — Investing.com
• 002475 AI Stock Analysis | StockKit
• Luxshare Precision (002475) Fund Flows — Stockstar
• Luxshare Precision 002475 DDX Real-Time Fund Trends and Main-Fund Flows — DDX Query
• Luxshare Precision (002475) Shareholder Research — F10 — 10jqka

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current as of the data cutoff: September 11, 2026 closing; September 13, 2026 was a Sunday and the A-share market was closed. Timing discrepancies may exist. Specific data should be checked against the company’s official announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.