Bank of America Securities: Upward pressure on raw material prices lowered Lixun Precision (02475)'s full-year profit forecast by 5%

The Zhitong Finance App learned that Bank of America Securities released a research report saying that due to upward pressure on raw material prices, the bank will cut Lixun Precision (02475)'s 2026 profit forecast by 5%, while fine-tuning the 2027-2028 forecast according to the guidelines, and lowered its target price for Lixun Precision (002475.SZ) A-share from 78 yuan to 76 yuan, reaffirming the “buy” rating.

Bank of America Securities pointed out that Lixun Precision's net profit for the second quarter increased 16% year over year to RMB 4.2 billion, reaching the lower limit of previous guidelines, which was 3% and 4% lower than the bank's and market expectations, respectively. During the period, the company's revenue increased 45% year-on-year to RMB 90.6 billion, higher than the bank and market expectations of 9% and 6%. On the business side, the company has made positive progress in the field of AI server components and optics, and management is confident that it will gain more than 50% market share of domestic supercluster cables/connectors by next year.