Luxshare Precision Industry Co Ltd Class A 002475

Luxshare’s Shift to Focus on AI Servers and Autos Is a Good Sign for Profitability

Since its public listing in 2010, Luxshare Precision has successfully penetrated Apple's supply chain, and Apple’s share of Luxshare’s overall sales has increased to more than 75% in 2023 from less than 10% in 2011. Over the past decade, the company has built up a solid track record at Apple, which has enabled Luxshare to expand its footprint beyond cables and connectors for iPhones and MacBooks to acoustic, haptic, and assembly services for AirPods and Watch. Despite often entering into Apple’s competitive supply chain as a second- or third-sourced player, Luxshare has managed to maintain an average gross margin of 15% between 2019 and 2023. This has contributed to the firm’s average return on invested capital of 20% over the same period.