Analysis of Luxshare Precision's Strategies to Address False Market Rumors and Their Impact

Based on collected data and market information, I will conduct a comprehensive analysis of Luxshare Precision’s response strategies to false market rumors and their impact.

According to public information, Luxshare Precision faced multiple market rumors during 2024-2025:

• False information related to Foxconn’s business (potentially involving capacity adjustments, factory relocations, etc.)
• False rumors about U.S. investment plans
• Rumors about abnormal market fluctuations in September 2025
• Market rumors related to OpenAI collaboration (some positive)

• September 17, 2025: The company issued the “Announcement on Abnormal Stock Trading Fluctuations” [5]
• December 31, 2025: Issued a clarification announcement, emphasizing that “core business is progressing in an orderly manner, and there are no abnormal situations affecting operations and development” [1]
• December 31, 2025: Simultaneously announced a RMB 1-2 billion share repurchase plan [4]

Luxshare Precision adopted

response strategies:

• The company promptly issued clarification announcements after rumors emerged
• Clearly stated that “core business is progressing in an orderly manner and proceeding as planned”
• Emphasized that “there are no abnormal situations affecting the company’s normal operations and development”
• Stated that it will “pursue legal responsibility for malicious acts that damage the company’s reputation” [1]

• Repurchase scale: RMB 1-2 billion
• Maximum repurchase price: RMB 86.96 per share (current stock price: RMB 56.71)
• Repurchase ratio: 0.16%-0.32% of total share capital
• Repurchase period: 12 months
• Funding Support
  : Obtained a loan commitment letter of up to RMB 1.8 billion from Industrial and Commercial Bank of China Shenzhen Branch [4]

• Maintained communication with investors through interactive platforms, investor relations activity records, and other channels
• Regularly disclosed business progress and operational status
• Maintained transparency to reduce information asymmetry

• Clearly stated that it will pursue legal responsibility for malicious acts that damage the company’s reputation
• Established a rumor tracing mechanism to increase the cost of spreading false information

Based on stock price data analysis from August to December 2025 [0]:

• Period gain: +54.78% (from RMB 36.64 to RMB 56.71)
• Period high: RMB 72.20 (reached in October)
• Period low: RMB 35.80 (August)
• Annualized volatility: 52.60% (significantly higher than the market average)

On the day of the abnormal fluctuation announcement on September 17, 2025:

• Closing price that day: RMB 52.01
• 5-day gain before: +8.15%
• 5-day gain after: +34.97%
  (significant increase)

This indicates the market’s

to the company’s clarification announcement, and investor confidence was not long-term damaged by the rumors.

• The RMB 1-2 billion repurchase plan demonstrates management’s confidence in the company’s intrinsic value
• The actual controller and vice chairman completed additional share purchases in August 2025 [5]
• The controlling shareholder’s equity pledge ratio is reasonable, with no risk of forced liquidation

• Sound financial health: ROE of 21.30%, net profit margin of 5.06% [0]
• Stable cash flow: Free cash flow of RMB 1.906 billion [0]
• Diversified business: In addition to the Apple supply chain, actively expanding into automotive electronics, communication equipment, and other fields

• As of August 26, 2025, the company remains a heavyweight stock for many institutions
• The 2025 semi-annual report shows that the institutional shareholding ratio is stable [5]

Based on DCF valuation analysis from the brokerage API [0]:

Scenario	Intrinsic Value	Premium Over Current Price	Probability Weight
Conservative	RMB 142.11	+150.6%	30%
Base	RMB 166.43	+193.5%	50%
Optimistic	RMB 235.48	+315.2%	20%
Weighted Average	RMB 181.34	+219.8%	-

• Even in the conservative scenario, the intrinsic value still has a 150.6% premium over the current stock price
• This indicates that the market may have
  overreacted
  to the impact of the rumors
• The company has solid fundamentals and significant long-term investment value

• Price-to-Earnings Ratio (P/E): 26.08x
• Price-to-Book Ratio (P/B):5.14x
• Price-to-Sales Ratio (P/S):1.32x

• Current valuation is at a historical medium level
• Compared to the 2020-2021 high (P/E over 50x), the current valuation has corrected significantly
• Leaves room for future valuation recovery

• Beta coefficient:1.34 (relative to CSI 300 Index)
• This indicates that Luxshare Precision’s stock price volatility is 34% higher than the market average
• The high Beta characteristic makes it prone to amplifying the impact of rumors during market sentiment fluctuations

####4.1 Short-Term Effect (1-3 Months)

• ✅ Stock price rebounded quickly after rumor clarification (5-day gain of 34.97% after September17)
• ✅ Repurchase plan provides clear price support signal
• ✅ Trading volume remains at a healthy level (average daily171 million shares)
• ✅ No large-scale shareholder share reductions

• ⚠️ Annualized volatility of52.60% remains high
• ⚠️ Technical indicators show sideways consolidation, lacking a clear direction [0]

####4.2 Medium-Term Effect (3-12 Months)

• The company continues to advance the H-share listing plan to enhance international influence
• Strong sales expectations for iPhone17 (daily production increased by40%) [6]
• New business collaborations such as OpenAI open up growth space for AI hardware
• Repurchased shares are used for equity incentives, aligning the interests of core employees with those of shareholders

• Risk of cyclical fluctuations in the consumer electronics industry
• Long-term impact of Apple’s “de-Chinaization” strategy
• Potential impact of geopolitical risks on the supply chain

####4.3 Long-Term Effect (1-3 Years)

• There is a huge gap between the intrinsic value shown by DCF and the current stock price
• If the company continues to deliver performance, valuation is expected to return to a reasonable level
• The cumulative gain of 39.91% in2025 shows that the market has begun to re-recognize the company’s value [4]

####5.1 Core Views

1. Rapid Response
   : Timely clarification to reduce panic during information vacuum periods
2. Substantive Support
   : Large-scale repurchase plan provides real financial support
3. Legal Deterrence
   : Clear accountability mechanism to increase the cost of spreading false information
4. Continuous Communication
   : Maintain regular communication with investors

####5.2 Conclusion of Investor Confidence Evaluation

• Strong fundamental support (ROE21.30%, abundant cash flow)
• Proactive management response (repurchase + additional share purchases)
• Significant long-term investment value (DCF shows 219.8% upside potential)
• The only drawback is that short-term volatility remains high

####5.3 Conclusion of Valuation Evaluation

• Even under conservative valuation, there is still over150% upside potential
• Under the base scenario, valuation is close to a200% premium
• The market may have overreacted to short-term rumors and ignored long-term fundamentals

####5.4 Risk Warnings

1. Consumer electronics demand falls short of expectations
2. Risk of Apple supply chain adjustments
3. Geopolitical uncertainty
4. Valuation recovery time may be longer than expected

• Short-term
  : Pay attention to stock price fluctuations and take advantage of positioning opportunities when market sentiment overreacts
• Medium-term
  : Focus on iPhone17 sales fulfillment and new business progress
• Long-term
  : Hold high-quality targets and enjoy the dual growth dividends of AI hardware and automotive electronics

[0] Gilin API Data - Luxshare Precision (002475.SZ) Company Overview, Real-Time Quotes, Financial Analysis, Technical Analysis, DCF Valuation

[1] Gelonghui News - Luxshare Precision: Clarification on Recent False Rumors (January3,2025)

[2] V View Financial Report | Luxshare Precision: No Abnormal Situations Affecting Operations and Development (January2,2026)

[3] Caiwen - Luxshare Precision Plans to Repurchase RMB1-2 Billion of Company Shares for Equity Incentives or Employee Stock Ownership Plans (December31,2025)

[4] The Paper - Luxshare Precision Plans to Repurchase Up to RMB2 Billion Shares for Employee Stock Ownership Plans or Equity Incentives (December31,2025)

[5] Luxshare Precision Official Website Investor Relations Section - Company Announcements and Investor Relations Activity Records

[6] Ebang Power - Can OpenAI’s Hardware Dream Come True? (October2,2025)