Luxshare Precision Sales Top Expectations; Share Pullback Offers Entry Point; New FVE CNY 47

We lift our Fair Value Estimate on Luxshare Precision to CNY 47 per share from CNY 40.50 after updating USD/CNY assumptions and factoring in more upbeat computer-related and display module sales. Our Fair Value Estimate corresponds to 24 times 2023 P/E; lower than the company's 5-year historical average of 30 times since we presume the company's topline growth to slow from over 50% (2012-21 average) to about 24% in the next five years. We think the recent tech rout has provided a decent entry point to the stock as an Apple-heavy upstream play with a call option on automotive and communications segments. Prudent investors may hold off until the offer price of share placement (announced Feb 2022) is confirmed, which is probable in the next six months.