Luxshare Precision Industry Co., Ltd., together with its subsidiaries, designs, manufactures, and sells cable assembly and connector system solutions worldwide. The company primarily offers cable assemblies, connectors and structural parts, power cables and chargers, antennas, acoustic components, headsets and speakers, power cords, test fixtures, VM/VCM, dongles, optic products, telecom products, harness products, smart wearables, electronic cigarettes, mechanical components, routers, and casing and radio frequency products. It also provides photoelectric conversion and optic transmission application products, cooling and transmission modules, RCU, etc.; base station filters, tower mounted amplifiers, duplexers, combiners, RRU, AAU, small base stations, etc.; and computer peripherals and plastic hardware products. Its products are used in enterprise, cloud, automotive, communication, auto electronics, and medical applications, as well as consumer electronics. The company was founded in 2004 and is based in Dongguan, China.

BUILD UP FREE CASH	2023-01-01 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	214,028.4	231,905.5	268,794.7	334,971.7	394,905	446,745.1	446,745.1	446,745.1
Revenue % Chg.	39%	8.4%	15.9%
EBIT	10,609.9	10,642	10,513.4	18,252.7	22,906.9	28,061.2	28,061.2	28,061.2
EBIT Margin	5%	4.6%	3.9%
Tax Rate	6%	5%	9.5%
NOPAT	9,975.4	10,111.9	9,515.1	16,386.9	20,473.7	24,855.2	24,855.2	24,855.2
NOPAT Margin	4.7%	4.4%	3.5%	4.9%	5.2%	5.6%	5.6%	5.6%
D&A	7,573.4	10,029.1	10,734.7	11,284.4	13,439.1	14,405.5	14,405.5	14,405.5
D&A / Revenue	3.5%	4.3%	4%
Capex	-13,584.1	-11,387.4	-12,110.7	-14,324.5	-14,094	-13,419.5	-13,419.5	-13,419.5
Capex / Revenue	-6.3%	-4.9%	-4.5%
Chg. NWC	-6,611.8	4,280.8	3,156.4	-77.1	-90.9	-102.8	-102.8	-102.8
Chg. NWC / Revenue	-3.1%	1.8%	1.2%
Unlevered FCF (UFCF)	-2,647.1	13,034.4	11,295.5	13,269.7	19,727.9	25,738.4	25,738.4	25,738.4
UFCF % Chg.	-62.2%	-592.4%	-13.3%	17.5%	48.7%	30.5%	—	—
PV of UFCF	—	—	—	12,197.1	16,667.7	19,988.2	18,372.6	16,887.6
Sum of PV of UFCF	—	—	—	12,197.1	28,864.8	48,853	67,225.6	84,113.2

Cost of Debt
Tax Rate
After Tax Cost of Debt	2.6%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.7%
Total Debt	66,262.6
Market Cap	430,783.4
Total Capital	497,046
Debt Weighting	13.3%
Equity Weighting	86.7%
WACC	8.8%

Exit Multiple EV/FCF
Terminal Value	479,813.4
PV of Terminal Value	289,370.9
Cumulative PV of UFCF	84,113.2
Net Debt	30,264.2
Equity Value	343,219.9
Shares Outstanding	7,270.6
Implied Share Price	47.2
Current Share Price	59.3
Implied Upside / (Downside)	-20.3%