Net Profit Exceeds RMB10 Billion for the First Time with Diversified Synergistic Business Presence
SHENZHEN, CHINA – Media OutReach Newswire – 30 April 2024 – On April 24th, Luxshare Precision unveiled its 2023 annual results, 2024 first-quarter financial figures and 2024 interim results forecast together, which brings positive market feedback due to its consistent improved profitability. With those eye-catching financial figures, Luxshare Precision’s stock price climbed over 5% intraday, with a total daily turnover surpassing RMB3.5 billion. Over the week, the company’s stock price increased by more than 9%.
According to the annual report, Luxshare Precision’s 2023 operating revenue achieved approximately RMB231.91 billion, representing a year-on-year increase of 8.35%. Net profit attributable to shareholders of the listed company exceeded RMB10 billion for the first time to RMB10.95 billion, representing a year-on-year increase of 19.53%. In the first quarter of 2024, Luxshare Precision achieved operating revenue of approximately RMB52.41 billion, representing a year-on-year increase of 4.93%. Net profit attributable to shareholders of the listed company was about RMB2.47 billion, representing a year-on-year increase of 22.45%. Meanwhile, Luxshare Precision announced an impressive performance forecast in terms of its net profit for the first half of 2024 with an increase of 20%-25% year-on-year.
The consumer electronics, the key business segment which accounted for 85% of Luxshare Precision’s annual operating revenue, recorded a year-on-year increase of 9.75% to RMB197.18 billion. Over the past year, Luxshare Precision has continued to deepen cooperation with its major customers to enhance its position in the industry chain. By leveraging its vertical integration and efficient collaborative capabilities in components, modules and systematic solutions, Luxshare Precision has kept expanding its shares in the supply chain of major customers and continues to play a significant role in the supply chain for products such as iPhone, AirPods, and Apple Watch. Also, Luxshare Precision has become the exclusive supplier for the Vision Pro, which is the first spatial computing device of Apple.
At the end of 2023, Luxshare Precision acquired a 62.5% stake in Pegaglobe (Kunshan) Co., Ltd. for RMB2.1 billion (about US$300 million). This acquisition is expected to broaden Luxshare Precision’s business cooperation with Apple. After the transaction, Luxshare Precision’s share of mobile phones is expected to reach nearly 40%, with iPhone shipments in 2024 projected to double.
Analyst from Wall Street investment firm Wedbush anticipates that, the iPhone 16, set to launch in September this year, will feature AI intelligence. As a key iPhone supplier and the main supplier for the iPhone 16 Pro Max in the latter half of the year, Luxshare Precision is expected to benefit significantly from market recovery and new model releases.
In March, NVIDIA unveiled the DGX GB200 NVL 72 at the GTC 2024 conference, spotlighting “copper interconnections”, a core product of Luxshare Precision’s communication business. Luxshare Precision currently utilizes self-developed and self-produced Optamax ultra-low-loss, anti-bending high-speed bare wire technology, and offers high-speed copper cable products such as DAC and ACC. Along with the company’s optical interconnection and thermal management products, Luxshare Precision offers comprehensive solutions for high-speed interconnection, earning recognition from top global customers. Luxshare Precision’s communication business revenue in 2023 was RMB14.538 billion, representing a 13.28% year-on-year increase.
During the conference call, the management of Luxshare Precision highlighted that in addition to growth in major customer product lines, the company has also seen success in segmented product areas. For Audio products, the company provides ODM products to various large-scale customers worldwide, and has strong vertical integration capabilities within the industry, bringing substantial margin benefits. Additionally, product lines like the Thunderbolt can also make contribution to the company’s overall growth.
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