Bank of America Securities: Raw material prices are under upward pressure, reducing the full-year profit forecast for Luxshare Precision Industry (02475) by 5%.

Bank of America Securities released a research report stating that, due to upward pressure on raw material prices, it has lowered its earnings forecast for Luxshare Precision Industry (02475) for 2026 by 5%. It has also slightly adjusted the forecasts for 2027 to 2028 based on guidance, reducing the target price for Luxshare Precision Industry (002475.SZ) A-shares from 78 yuan to 76 yuan, while maintaining a "buy" rating. Bank of America Securities pointed out that Luxshare Precision Industry's net profit for the second quarter increased by 16% year-on-year to 4.2 billion yuan, reaching the lower limit of previous guidance, which was 3% and 4% lower than the bank's and market expectations, respectively. During the same period, the company's revenue grew by 45% year-on-year to 90.6 billion yuan, exceeding the bank's and market expectations by 9% and 6%, respectively. On the business front, the company has made positive progress in AI server components and optical fields, and management is confident of achieving over 50% market share in domestic super cluster cables/connectors by next year.