Bank of China International released a research report, covering Lixun Precision's H shares for the first time and giving it a “buy” rating. The target price is HK$78.3, which is equivalent to 18 times the projected price-earnings ratio in 2027. The bank pointed out that the company is developing from the world's leading consumer electronics precision manufacturer to a global integrated platform covering AI communication and data centers and automotive electronics EMS/ODM, benefiting significantly from AI communication data centers and automotive electronics industry opportunities. The bank pointed out that the company's AI data center products, such as copper interconnection, optical interconnection, liquid cooling and power supply, have received design targets and mass production orders from many major overseas cloud service companies. In the automotive business, the successful acquisition and integration of Leoni brought significant synergy effects, increasing cross-sales and net profit margins. Consumer electronics is the core cash flow business, and despite facing upward pressure on memory prices, both Apple and non-Apple businesses continued to outperform expectations. The bank expects Lixun Precision's compound annual revenue growth rate to reach 19% and net profit compound annual growth rate of 30% from 2025 to 2028 due to improved product portfolio and increased operating leverage.

Zhitongcaijing · 2d ago
Bank of China International released a research report, covering Lixun Precision's H shares for the first time and giving it a “buy” rating. The target price is HK$78.3, which is equivalent to 18 times the projected price-earnings ratio in 2027. The bank pointed out that the company is developing from the world's leading consumer electronics precision manufacturer to a global integrated platform covering AI communication and data centers and automotive electronics EMS/ODM, benefiting significantly from AI communication data centers and automotive electronics industry opportunities. The bank pointed out that the company's AI data center products, such as copper interconnection, optical interconnection, liquid cooling and power supply, have received design targets and mass production orders from many major overseas cloud service companies. In the automotive business, the successful acquisition and integration of Leoni brought significant synergy effects, increasing cross-sales and net profit margins. Consumer electronics is the core cash flow business, and despite facing upward pressure on memory prices, both Apple and non-Apple businesses continued to outperform expectations. The bank expects Lixun Precision's compound annual revenue growth rate to reach 19% and net profit compound annual growth rate of 30% from 2025 to 2028 due to improved product portfolio and increased operating leverage.