Luxshare Precision Industry Co., Ltd. (002475.SZ) has announced an upbeat earnings forecast for the first quarter of 2026. The company expects net profit attributable to shareholders of the listed company to reach between 3.652 billion yuan and 3.713 billion yuan, representing a year-on-year increase of 20% to 22%.
During the first quarter of 2026, the company's operations were influenced by several factors. First, due to rising prices in the global memory market, some of the company's consumer electronics customers made phased adjustments to the development and launch schedules of new products and correspondingly reduced output of certain existing products. Second, influenced by rising prices of upstream commodities such as copper, aluminum, and nickel, although the company has established periodic price negotiation mechanisms with its customers, there was a certain time lag in the transmission of related cost pressures during the reporting period. Third, starting from the fourth quarter of 2025, increased volatility in the foreign exchange market led to higher exchange losses within financial expenses; however, the company actively engaged in risk hedging using derivative instruments such as forward foreign exchange contracts.
Since 2025, to continuously deepen its cooperative relationships with core domestic and international clients, the company has steadily increased its investment in pre-research for forward-looking technologies and innovations. In the consumer electronics sector, driven by the deepening synergies within its ODM team, the company has not only made positive progress in expanding its customer base but has also further developed its AIPC business by leveraging integrated foundational capabilities, bringing new operational increments for the future. In the data center business, the company achieved significant breakthroughs with multiple customers in areas such as copper-based optical high-speed interconnection, thermal management, and power supply modules, laying a foundation for subsequent efficiency gains in related operations.
Overall, despite facing multiple challenges during the reporting period, the company's overall performance maintained a positive trend. Continuous optimization and improvement in the internal operations of its subsidiary, Lanny Group, also provided active support to the company's overall operational results. The forecast of over 20% year-on-year growth in first-quarter net profit attributable to shareholders fully demonstrates the company's solid management capabilities and the upward resilience and cycle-resistant strength derived from its diversified business layout.
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