Why is Apple supplier Luxshare Precision Industry stock sliding today?

Luxshare Precision Industry, an Apple supplier, experienced a decline in its stock price on Friday following the release of its third-quarter 2026 results. The company's net profit for the period stood at RMB 5.214 billion, marking a year-over-year growth of only 6.98%, which was notably lower than the double-digit growth rates observed in previous quarters.

Despite a 14.62% year-over-year increase in revenue to RMB 110.507 billion, Luxshare's nine-month profit only grew by 13.4% to 13.06 billion yuan, falling short of its preliminary forecast of RMB 13.25 billion to RMB 14.40 billion. The company also provided guidance for its full-year 2026 net profit, projecting growth of 15%–20% year-over-year.

However, the company's adjusted profit growth, a more refined measure of operational performance, was expected to be more conservative, ranging from 9.44%–16.71%. This subdued outlook led investors to interpret it as a signal of underlying profitability challenges. Luxshare's performance was also weighed against a broader market trend, as the Hang Seng Index witnessed a rotation into non-tech sectors, resulting in an over 1% rise.