Luxshare Precision Industry Co.Ltd(002475) (002475)
Chinese electronics manufacturers are opening a new chapter. Unlike the two or three years ago, the leading suppliers of Chinese mainland began to expand to the supply chain and initially opened up the downstream assembly stage. Leading suppliers in Chinese mainland have the basic ability of internationalized large scale electronic manufacturing, assembly and service, and are beginning to emerge. We believe that suppliers in Chinese mainland have the opportunity to build up downstream assembly platforms to boost their output value and increase their profits and build moat. At the same time, it can also help electronic brands, such as apple, reduce the pressure of growing and complex supply chain management with its own platform ability. Apple’s hardware products are both basic disks and incremental space for China’s supply chain. We think Luxshare Precision Industry Co.Ltd(002475) (002475. CH) can benefit from this trend, so we give a “buy” rating for the first time. The target price in the next 12 months is 58.3 yuan, with a potential increase of 24.9%
