Luxshare Precision Reports Steady Growth in Q3 2024 Results, Optimistic About Annual Performance
HONG KONG SAR - Media OutReach Newswire - 1 November 2024 - Luxshare Precision (002475.SZ) announced its Q3 2024 financial results on October 25. In the first three quarters of the year, the company achieved approximately RMB177.177 billion in revenue, reflecting a year-on-year growth of 13.67%.
The net profit attributable to shareholders of the listed company reached RMB9.075 billion, marking a year-on-year increase of 23.06%. These figures highlight the company's robust performance, driven by its deep engagement in several key business segments.
A core pillar of Luxshare Precision is consumer electronics, where strong partnerships with longstanding clients like Apple Inc. have yielded significant returns. Additionally, in the communication and data center sector, along with the automotive electronics area, the company has launched innovative products and solutions that have garnered positive market feedback, emerging as new growth drivers.
In the consumer electronics sector, Luxshare Precision continues to demonstrate its technological prowess. In September 2024, Apple Inc. launched the iPhone 16 series. According to Counterpoint Research, sales of the iPhone 16 Pro and Pro Max surged by 44% compared to last year's models. The new iPhone experienced a strong debut in the Chinese market, with sales in the first three weeks up 20% compared to the 2023 models. Recently, Apple's Chief Operating Officer, Jeff Williams, accompanied by Luxshare Precision's Chairwoman, Ms. Wang Laichun (Grace Wang), visited the factory in Kunshan, Jiangsu, where he praised the advanced automation and maturity of the production lines. This endorsement from such a pivotal partner not only underscores Luxshare Precision's significant role in the global consumer electronics market, but also highlights its commitment to quality and technological innovation.
Moreover, Apple Inc. has announced the launch of its Apple Intelligence feature on October 28, alongside iOS 18.1. This feature will integrate Siri and ChatGPT to enhance user experience. The introduction of Apple Intelligence is expected to boost sales of Apple products, from which Luxshare Precision stands to benefit, further promoting its development in the consumer electronics sector.
In the communication and data center sector, Luxshare Precision is focusing on core products related to electrical connections, air-cooled/liquid-cooled cooling systems, and power management to meet the demand for high-performance solutions. The company has made significant strides in high-speed interconnection within data centers. At the 2024 OCP Global Summit, Luxshare Precision showcased its proactive contributions to AI data center innovations. Its subsidiary, Luxshare-Tech, introduced 224G High-Speed Interconnect Systems, Liquid Cooling System Solutions, and High-Power Interconnect Systems, all designed with advanced manufacturing processes to ensure stability and reliability during high-speed data transmission, supporting the rapid growth of AI applications.
Overall, Luxshare Precision is continually deepening its diversified development strategy to solidify its position as a comprehensive technology manufacturing enterprise while actively addressing potential market challenges. Over the past year, the company has strategically executed several important acquisitions, further enhancing its market position in manufacturing and automotive sectors.
In the automotive sector, Luxshare Precision has formed strategic partnerships with major global automotive manufacturers in areas such as wiring harnesses, connectors, intelligent cabins, and intelligent driving. Through continuous innovation and improved production capacity, the company is enhancing its competitiveness in the automotive market. To accelerate the globalization of its automotive business, Luxshare Precision announced plans to acquire a 50.1% stake in German cable and harnessing manufacturing giant Leoni AG and 100% of its wholly-owned subsidiary, Leoni Kabel GmbH. Grace Wang stated that the company aims to leverage Leoni's resources in conjunction with Luxshare Precision's own strengths, thus expanding its global business footprint and driving innovation to provide greater value to customers. This strategic move will further solidify Luxshare Precision's position in the global automotive wiring harness market and expand additional market opportunities.
In the consumer electronics sector, Luxshare Precision plans to acquire a majority stake in Pegatron's Kunshan factory for RMB2.1 billion, which will make it the largest shareholder of the factory and position it to become the second-largest iPhone assembler globally. This acquisition is expected to further consolidate its role within Apple's supply chain.
Furthermore, Luxshare Precision has completed the acquisition of Qorvo's packaging and testing facility in China, which is expected to enhance its packaging and testing capabilities in the consumer electronics RF front-end module sector, further strengthening its competitive advantage in the industry. The acquired facility specializes in core components for wireless communication modules, focusing on the mobile cellular market. Through these strategic acquisitions, Luxshare Precision continues to optimize and deepen its business layout, laying a solid foundation for future growth.
Luxshare Precision projects that its net profit for the entire year of 2024 will reach between RMB13.143 billion and RMB13.691 billion, indicating a year-on-year increase of 20.00% to 25.00%. Excluding nonrecurring profit and loss, the net profit is projected to be between RMB11.486 billion and RMB12.713 billion, with a year-on-year growth of 12.76% to 24.82%. Having been listed among Fortune Global 500 for two consecutive years, Luxshare Precision will continue to pursue a dual-driven strategy of internal growth and external expansion to promote steady business growth. Looking ahead, with the launch of new Apple products and ongoing growth in the communications and automotive areas, Luxshare Precision's future business performance appears promising.
Hashtag: #LuxsharePrecision
The issuer is solely responsible for the content of this announcement.
