LUXSHARE(002475)：RESILIENT FY22／1H23 DESPITE INDUSTRY HEADWINDS

Luxshare posted FY22 revenue/NP growth of 39%/30% YoY, largely in-line with expectations, and it also pre-announced 1H23 earnings growth of 10-20% YoY, which we believe is resilient given weakness in smartphone/ consumer electronics market. Given challenging macro headwinds, Luxshare delivered impressive operating efficiency and cost synergies. Looking forward, following multiple strategic M&As in 2020/21, we believe Luxshare is well-positioned to gain share in iPhone/Macbook/iPad/Watch OEM/components, and capture opportunities in automobile tier-1 biz and AR/VR product cycle. We adjusted FY23-25E EPS by -2%/+2% to reflect macro headwinds and accelerated auto segment. The stock now trades at 15.2x FY23E P/E, close to 1-sd below 5-yr average P/E. Maintain BUY with new TP of RMB48.0 based on lowered 28x FY23E P/E. Upcoming catalysts include Apple MR launch in June.
FY22/1H23 earnings largely in-line; Impressive growth in smartphone components/OEM. Despite global macro weakness, rising inflation and geopolitical uncertainties, Luxshare delivered a solid set of FY22 results with sales/NP growth of 39/30% YoY. By segment, computer/automotive/ communications/consumer electronics revenue grew 44%/48%/293%/33% YoY, while GPM was largely stable at 12.2% in FY22. In particular, its subsidiary, Luxcase Precision （casing & top module）， reported revenue/net profit growth of 49%/102% and NPM improved 0.7ppt YoY to 2.6% in FY22.
Multiple growth drivers: iPhone 15/MR, auto tier-1 biz and overseas expansion. As the major OEM/component supplier of Apple’s iPhone/Airpods/Watch, we believe Luxshare will benefit from Apple’s iPhone 15 cycle in 3Q23 and continue share gain in top module/OEM in FY23E. In addition, we expect Luxshare will expand into OEM biz for Apple’s first-gen MR device in 2H23E （500k in FY23E）， and gradually ramp up OEM/component share allocation in FY24/25E. Benefiting from Apple’s supply chain expansion strategy, Luxshare plans to accelerate capacity expansion for CE/auto components in Vietnam and Mexico. As auto tier-1 business and communications segment is set to deliver stable growth post- integration and overall profitability continues to improve in FY23/24E, we forecast earnings will grow 33%/24% YoY in FY23/24E.
Attractive risk/reward; Reiterate BUY. We believe Luxshare’s operating efficiency will continue to improve with economies of scale in iPhone/ Macbook/iPad OEM/components, and new opportunities in auto tier-1 and AR/VR will boost revenue upside in FY24/25E. The stock now trades at 15.2x FY23E P/E, close to 1-SD below 5-year hist. avg P/E. Reiterate BUY with new TP of RMB48.0 based on lowered 28x FY23E P/E for softer consumer electronics market. Catalysts include iPhone share gain, Apple MR launch and auto tier-1 business progress.
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   【免责声明】本文仅代表第三方观点，不代表和讯网立场。投资者据此操作，风险请自担。