On July 9th, Luxshare Precision (002475. SZ, 02475. HK) officially listed on the Hong Kong stock market.

This precision manufacturing company, founded in 2004, was listed on the Shenzhen Stock Exchange in 2010 and has now completed the construction of the "A+H" dual capital platform. This global offering is priced at HKD 63.28 per share, which is the upper limit of the IPO price range, raising approximately HKD 24.3 billion, surpassing Shenghong Technology (300476. SZ, 02476. HK), which went public in April this year, and making it the largest IPO in Hong Kong stock market since 2026.

Pricing based on the upper limit of the range is not common in this year's "A+H" new stocks. Several "A+H" companies that went public in the first half of the year generally offered discounts of over 30% compared to A-shares. Lixun Precision is priced at an upper limit with a discount of only about 13%, which is the narrowest level since 2025, second only to CATL's zero discount.

In the previous subscription stage, the Hong Kong public offering recorded 3.81 times oversubscription, with approximately 47000 participants. The international allocation has been fully funded on July 3rd, ending earlier than originally scheduled. A total of 26 cornerstone investors subscribed for $1.5 billion, locking in nearly half of the shares for sale. Three sovereign wealth funds, Temasek, GIC (Singapore Government Investment Corporation), and Abu Dhabi Investment Authority, were also listed.

Since 2025, several leading A-share companies have completed IPOs on the Hong Kong stock market. Among them, only CATL (300750. SZ, 03750. HK) and Luxshare Precision have subscribed for a subscription amount of over 1 billion US dollars.

Three sovereign funds enter simultaneously

Since 2025, the concentration of A-share leading enterprises going public in Hong Kong has become one of the most significant trends in the capital market. According to EY data, in the first half of 2026, the Hong Kong IPO market recorded 87 companies going public, raising a total of HKD 210 billion, a year-on-year increase of 92%, setting a five-year high. Among them, "A+H" companies contributed 24 orders, raising a total of over HKD 120 billion. Ningde Times, Shenghong Technology, Lansi Technology (300433. SZ, 06613. HK), and Lingzhi Zhizao (002600. SZ, 01688. HK) have successively completed their listing on the Hong Kong Stock Exchange.

In a market with a high concentration of new stock issuances, the composition of cornerstone investors and pricing discounts are common references for observing a company's level of institutional recognition.

The issue price of "A+H" new shares is usually lower than the stock price of A-shares, and the difference between the two is a discount, which can be understood as a price compensation given by the issuer to international investors. The narrower the discount, the more willing the institution is to subscribe at a level closer to the A-share market price. Several "A+H" companies that went public this year have significantly different discount rates: Lansi Technology is about 34%, Shenghong Technology is about 37%, Lanqi Technology is 44.3%, and Zhaoyi Innovation is 43.6%. Lixun Precision is about 13%. The discount of CATL, which will be listed in May 2025, is close to zero, and the H-share price will surpass the A-share price after listing. A 13% discount means that international institutions have almost subscribed to Luxshare Precision's H shares at the market price of A-shares.

Since 2025, the cornerstone lineup of several benchmark large-scale IPOs in the Hong Kong stock market has its own characteristics. In terms of subscription amount, CATL has 2.628 billion US dollars, Luxshare Precision has 1.5 billion US dollars, Shenghong Technology has 997 million US dollars, Lingyi Zhizao has 407 million US dollars, and Lansi Technology has 191 million US dollars. From the participation of sovereign funds, it can be seen that Temasek GIC、 Abu Dhabi Investment Authority has three sovereign wealth funds, CATL has one Kuwait Investment Authority, and there are no sovereign funds on the cornerstone lists of Lansi Technology, Shenghong Technology, and Lingzhi Zhizao.

Lixun Precision, Lansi Technology, and Lingyizhi Manufacturing have a special connection. Wang Laichun, Zhou Qunfei, and Zeng Fangqin are respectively in charge of these three consumer electronics precision manufacturing enterprises, and are known as the "Three Queens of Fruit Chain" in the industry. Three companies will be listed on the Hong Kong stock market from 2025 to 2026, with Lixun Precision's cornerstone subscription amount several times higher than the other two, Lansi Technology's $191 million and Lingzhi Zhizao's $407 million. In terms of the number of sovereign funds, Luxshare Precision has three, while the other two are zero. The subscription strength given by global institutions varies depending on the same track and similar industry background.

Looking specifically at the 26 cornerstone investors of Luxshare Precision, their fund types cover five categories. Temasek GIC、 Abu Dhabi Investment Authority is a sovereign wealth fund that manages national reserves, with an investment cycle of ten years. Hillhouse, Fidelity International, Oaktree Capital, and UBS Asset Management are top tier global asset management institutions. Tencent subscribed as industrial capital. Taikang Life Insurance represents insurance funds. Guangfa Fund, Jiashi Fund, Huitianfu Fund (Hong Kong), Boshi International and other Chinese public funds have all been raised. In the first half of 2026, there was only one case where five types of funds appeared on a cornerstone list in the Hong Kong stock market. All cornerstone investors have committed to a six-month lock up.

Three Growth Curves

In 2025, Luxshare Precision achieved a revenue of 332.344 billion yuan, a year-on-year increase of 23.64%; The net profit attributable to shareholders of the listed company was 16.599 billion yuan, a year-on-year increase of 24.20%, and both reached historical highs. In the first quarter of 2026, the company achieved a revenue of 83.888 billion yuan, a year-on-year increase of 35.77%, and forecasted a net profit attributable to the parent company of 7.84 billion yuan to 8.106 billion yuan in the first half of the year, a year-on-year increase of 18% to 22%. In the past three years, the company's revenue has increased from 231.905 billion yuan to 332.344 billion yuan, and the return on equity has remained above 21%.

From the perspective of income structure, the growth of Lite On Precision is driven by three business segments.

The consumer electronics business will achieve a revenue of 264.266 billion yuan by 2025, accounting for 79.52% of the total revenue and a year-on-year increase of 13.37%. It is the core source of profit and cash flow for Luxshare Precision. The concentration of the company's customers continues to decline: the proportion of revenue from the largest customer has decreased from 70.7% in 2024 to 56.68% in 2025. In September 2025, Guo Mingchi, an analyst at Tianfeng International, stated in a research report that OpenAI is in talks with Lite On Precision to collaborate on a consumer grade AI hardware device, with plans to launch it on the market as early as the end of 2026. Meta、 In Google's AI glasses product line, Luxshare Precision supplies precision structural components and acoustic modules.

The automotive electronics business will achieve a revenue of 39.255 billion yuan in 2025, a year-on-year increase of 185.34%, and its revenue proportion will rise from 5.12% in the previous year to 11.81%, making it the sector with the highest growth rate among the three major businesses. In the past two years, Luxshare Precision has completed two acquisitions in the automotive electronics field, expanding its business scope from wiring harnesses to intelligent chassis. In 2025, Luxshare Precision will complete the acquisition and integration of the German Leni Group. Lenny is the largest automotive wiring harness supplier in Europe and the fourth largest globally, with customers covering over 80% of mainstream car companies such as Mercedes Benz, BMW, and Volkswagen. Luxshare Precision currently holds a 74.9% stake. Wang Laichun evaluated the integration as "exceeding expectations" at the performance briefing in April 2026 and set specific goals: achieving a net profit margin of 3.5% for Lenny in 2027 and over 5% in 2029. In May 2026, Luxshare Precision conditionally acquired Jingxi Zhixing Group, which is the only enterprise in the world to achieve mass production of magnetorheological suspension. Magnetorheological suspension is a high-end suspension system that adjusts damping force in real time through a magnetic field. It has been installed in brands such as Ferrari and Lamborghini. This acquisition complements Luxshare Precision's product line in the field of intelligent chassis. Regarding the boundaries of the automotive business, Wang Laichun stated at the annual shareholders' meeting in May 2026 that the company does not consider whole vehicle assembly and focuses on providing Tier 1 (first tier supplier) level supply to global automakers.

The communication and data center business will achieve a revenue of 24.568 billion yuan in 2025, a year-on-year increase of 33.81%, with a gross profit margin of 18.40%, the highest among the three major businesses. Lixun Precision is a supplier of 224G high-speed copper cables for Nvidia GB200/GB300 servers. 800G optical modules have been delivered in bulk to North American AI customers, 1.6T optical modules have been verified by Nvidia, and liquid cooling solutions have been put into use in Alibaba data centers. Goldman Sachs' June research report raised the 12-month target price of Luxshare Precision from 50.15 yuan to 106 yuan, estimating that the compound annual growth rate of revenue for the communication and data center business from 2025 to 2028 will reach 67%.

In the revenue structure of Luxshare Precision, the consumer electronics business contributes a stable profit foundation, the automotive electronics business provides the highest growth rate, and the communication and data center business becomes the most profitable sector with a gross profit margin of 18.40%.

According to the plan disclosed in the prospectus, approximately 35% of the net fundraising of HKD 24 billion will be used to expand production capacity and upgrade global production bases, approximately 30% will be invested in technology research and development and intelligent manufacturing upgrades, and approximately 15% will be used for upstream and downstream industry mergers and acquisitions. Currently, Luxshare Precision operates 105 production bases in 29 countries worldwide.

Founded in Shenzhen in 2004, listed on the Shenzhen Stock Exchange in 2010, and completed "A+H" in 2026. Over the course of 22 years, Luxshare Precision's revenue has grown from less than 1 billion yuan to over 330 billion yuan, with customers covering the top ten consumer electronics brands and five communication data center brands worldwide. After going public on the Shenzhen Stock Exchange in 2010, the consumer electronics business completed large-scale expansion, and this time its Hong Kong stock investment direction has shifted to automotive electronics and AI data centers, which are also the two fastest-growing sectors of Luxshare Precision in the past three years.

Regarding the market prospects in these two directions, Wang Laichun said at the annual shareholders' meeting in May 2026, "Within three to five years, market demand will grow strongly