Goldman Sachs: Luxshare Precision (002475.SZ) — Data Center and Automotive Electronics Expansion Drives Growth; Initiating H-Shares and Resuming A-Share Coverage, Both at Buy (Summary)
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Goldman Sachs resumed coverage of Luxshare Precision's A-shares (002475.SZ) and initiated coverage of its H-shares (2475.HK), rating both Buy: 12-month targets of RMB 98.00 for the A-shares (73.2% upside from RMB 56.58) and HK$ 93.20 for the H-shares (54.3% upside from HK$ 60.40). The firm models 24% revenue CAGR over 2025–28, driven by data-center expansion (server cabinet cables and connectors, AI server components and assembly for Chinese cloud providers), automotive electronics (head-up displays, domain controllers, display modules), and rising smartphone ODM penetration. 2026/27 net profit forecasts sit 18%/30% above consensus, helped by Apple outperforming peers amid high memory costs, rapid AI server growth, richer mix, and disciplined opex. Luxshare ranked second globally in consumer-electronics PIMS in 2025 with 11.2% share (Frost & Sullivan). By segment, telecom/data center revenue grows at an 89% CAGR to 26% of 2028E revenue, automotive electronics 31% (14%), smartphone ODM 102% (7%). The A-share target uses 20.8x 2027E P/E; the H-share applies a 13% A–H discount. Downside risks: softer consumer-electronics demand, a higher opex ratio, and FX exposure (93% overseas revenue).