Luxshare Precision (002475.SZ) stock price hits a new high. What exactly has caused the company's stock price to triple this year?
On October 22, Luxshare Precision closed at 29.88 yuan, an increase of 3.03%, with the latest market value of 159.8 billion. The stock price reached a high of 30.68 yuan in intraday, setting a new high since its listing.
news, on October 21, the company released its third-quarter financial report, with performance significantly exceeding expectations: in the first three quarters, the operating income reached 37.8 billion yuan, a year-on-year increase of 70%; net profit attributable to shareholders was 2.9 billion yuan, a year-on-year increase of 74%.
Strong Apple product demand has driven the company's revenue growth. On the one hand, with the release of new smartphone products in September and the peak consumer electronics season approaching, the company's performance has "raised". Although the company did not disclose the market share of specific products in its financial report, according to Tianfeng Securities , in the first three quarters, the company's motor product share increased, wireless charging products maintained a high share, and AirPods products continued to increase in volume.
Luxxx Precision was founded in 2004. Its industry is electronic components. Its main products are electronic devices such as connecting wires, connecting wires, radio frequency antennas and wireless charging. It is mainly used in three major fields: consumer electronic products , communication products and automotive electronic products. Among them, consumer electronics products account for 78% of the revenue (interim report data), which is the largest and fastest growing area. After
went public in 2010, the company has successively acquired many companies: in 2010, it improved its wiring harness processing capabilities through the acquisition of Jiangxi Boshuo; in 2011, it acquired Kunshan Liantao, becoming the main supplier of internal wiring harnesses of Apple , entering the Apple industry chain; acquiring Kerrtong and Taiwan Xuande, entering the communications industry, establishing cooperative relationships with communication giants such as Huawei and Emerson ; in 2012, it acquired Zhuhai win-win and entered the FPC field; in 2014, it acquired Suzhou Fengdao, entering the wearable field; in 2016, it acquired Suzhou Meite, becoming the Apple acoustics supplier, and in 2017, it continued to acquire Huizhou Meilu, entering the domestic acoustic module supply chain.
At present, Apple is the largest customer of Luxshare Precision . Taking the opportunity of entering the Apple supply chain, the company has extended its product categories and currently has multiple products including linear motors, LCP antenna modules, acoustic products, etc., entering the Apple supply chain. It is also an assembly manufacturer of Apple wireless headphones AirPods.
Apple is how important is Luxshare Precision ? We can see that in 2018, the sales of the largest customer to the company accounted for as much as 44.85%, and this number is still rising.
As we all know, Apple controls the supply chain extremely strictly. Why did Apple choose Luxshare Precision ? For parts manufacturers, high-quality precision manufacturing and automation processes are the standards for measuring a company.
On the one hand, Luxshare Precision has strong precision manufacturing capabilities. It is a leading domestic connector company, the eighth connector manufacturer in the world, and the only diversified platform company in China: it has developed from a single consumer electronics market connection product manufacturer to a diversified product such as comprehensive coverage of connecting lines, connectors, acoustics, antennas, wireless charging and vibration motors.
Take AirPods as an example. As the most sophisticated product of Apple so far, it is very difficult to manufacture.
According to New Times Securities, the product was assembled and produced by Taiwan Instant, but the yield rate has always been unsatisfactory. After the Luxshare Precision was taken over, the yield rate reached close to 100%, becoming the first supplier.
According to Slice data, AirPods shipped 13 million in 2017, 26-28 million units in 2018, and is expected to be 51 million units in 2019, 85 million units in 2020, and more than 100 million units in 2021. This provides room for the future growth of Luxshare Precision . The trend of consumer electronic products such as
is also reflected in parts. On the one hand, electronic products such as mobile phones are thinner and thinner, and integrated circuit processes are advanced; in addition, in the transformation from 4G to 5G, the trend of communication base stations is multi-port, multi-wave number, and miniaturization, which requires increasingly high precision manufacturing of component manufacturers.
Company said that in the face of the above-mentioned technological trends, the overall development framework has been established from parts, modules to system solutions and the layout of core products has been realized. In 2018, the company's R&D expenses were 2.515 billion yuan, accounting for 7% of revenue, ranking among the top among A-share electronic stocks. Compared with the peers of
, in the first-level industry "electronic parts manufacturing" of Shenyin Wanguo , Luxshare Precision ranks first in performance and market value.
In the short term, Apple is still the main driving force for the company's performance. Tianfeng Securities said that in 2019, the company's acoustic material number is expected to enter watches, notebooks and other projects; in 2020, the new phone is expected to be equipped with reverse charging function, which will increase its value, and is expected to introduce wireless charging modules for tablets and notebook products; in terms of antennas, the difficulty of Apple 5G mobile phone antenna increases, and the company is expected to benefit; in addition, the company has invested heavily in wearable projects and is expected to introduce Apple Watch assembly projects next year. After the performance report of
exceeding expectations was released, securities companies including Anxin Securities , CICC , GF Securities and other securities companies have raised their target market value of Luxxx Precision to a maximum of 200 billion. However, a senior investor told Investment China.com that it is better for investors to calm down at this time. Judging from the full-year performance disclosed in the third quarter, Luxshare Precision 's annual performance increased by 50% year-on-year. This data means that the performance growth of Luxshare Precision slowed down significantly in the fourth quarter, with a year-on-year growth of only around 10%.
