HKG:2475

Luxshare's Profit Growth Slows as Currency Losses Offset Automotive, Data Center Gains

Luxshare Precision Industry's (HKG:2475, SHE:002475) net profit growth decelerated in the first half as exchange rate fluctuations overshadowed its revenue growth.Attributable net profit in the first half rose 18% year over year to 7.84 billion yuan, or 1.05 yuan per share, according to an aftermarket filing in Hong Kong on Monday.The pace of growth slowed from the 20% jump recorded in the first quarter and the 23% expansion in the first half of 2025."Due to exchange rate fluctuations, the company's exposure arising from its foreign currency-denominated assets and liabilities resulted in an exchange loss of approximately 1.99 billion yuan," the iPhone assembler said.Revenue growth, however, accelerated to 40% in the first half from 36% in the first quarter and 20% a year earlier, driven by strong contributions from its consumer electronics, automotive electronics, and data center segments.Revenue from its automotive electronics business surged 274% to 32.4 billion yuan due to the continued expansion in the global market for auto electronic components. The company also expanded its global auto customer base and production capacity after acquiring a 50.1% stake in German cable and wiring manufacturer Leoni AG in July 2025.The company's communication and data center segment saw its margin narrow to 17.3% from 19.8% as the product mix shifted toward lower-margin finished-product assembly work.Luxshare's overall gross margin remained almost flat at 11.78%, up by only 0.17 percentage points from a year earlier.Looking ahead, the company expects nine-month net profit to grow 15% to 25% to about 13.3 billion yuan to 14.4 billion yuan. Luxshare declared an interim dividend of 1.10 yuan per 10 shares, payable Oct. 22 to shareholders on record as of Sept. 22.