Luxshare Precision recently entered into an agreement with Qorvo, a manufacturer of wireless connectivity chips, to acquire Qorvo's assembly and test facilities in Beijing and Texas, China. The acquisition is expected to complete the financial terms in the first half of 2024, and this event has far-reaching business implications and significance for Luxshare Precision.
From a business perspective, the factories in Beijing and Dezhou are mainly responsible for the packaging and testing of RF front-end modules in the field of consumer electronics. The downstream end customers of these factories include Android phone brands such as OPPO, vivo, Xiaomi and Samsung, as well as some products from major customers in the United States. According to public information, the revenue volume of the two factories is more than 1 billion US dollars.
After the acquisition of these factories, Luxshare Precision will have the opportunity to cooperate with its original business, from system packaging to module packaging. This will help the company further vertically integrate its business capabilities and enhance its competitiveness in the consumer electronics sector.
From the perspective of profits, the revenue volume of the two factories is considerable, and according to the net profit margin of 12%, it is expected to contribute 7-800 million profit increments to Lixun Precision. This will further enhance the company's profitability and provide more financial support for its future development.
In addition, the layout of Luxshare Precision in the MR field is also worth paying attention to. According to the latest news, the company expects to release MR products in January 24, and the whole machine will be assembled by Luxshare. This shows that the company is very optimistic about the MR market and believes that MR will become a new innovation in the field of consumer electronics. Lixun Precision has obvious advantages in this field and is expected to continue to benefit in the future.
In the field of communications and automobiles, Luxshare Precision has also a complete layout. With the continuous development of 5G technology and the acceleration of the trend of automotive electrification, the company's communication and automotive platforms will usher in rapid growth momentum.
Based on the above analysis, we are optimistic about the future development of Luxshare Precision. It is estimated that the company's net profit attributable to the parent company in 23 24 25 years will reach 112 145 18.5 billion yuan. The current market value corresponds to only 16 times PE in 24 years, and the low valuation and high growth make Lixun Precision have obvious alpha attributes. We strongly recommend investors to pay attention to this event and be optimistic about the future development prospects of Luxshare Precision.
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