The Discounted Cash Flow (DCF) valuation of China Leadshine Technology Co Ltd (002979.SZ) is 20.36 CNY. With the latest stock price at 41.18 CNY, the upside of China Leadshine Technology Co Ltd based on DCF is -50.6%.

Is 002979.SZ a buy or a sell?

Based on the latest price of 41.18 CNY and our DCF valuation, China Leadshine Technology Co Ltd (002979.SZ) is a sell. Selling 002979.SZ stocks now will result in a potential gain of 50.6%.

	Range	Selected
WACC / Discount Rate	9.0% - 12.4%	10.7%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	14.52 - 34.06	20.36
Upside	-64.7% - -17.3%	-50.6%

41.18 CNY

Stock Price

20.36 CNY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

002979.SZ DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	1,584	1,916	2,373	2,753	3,107	3,439
% Growth	12%	21%	24%	16%	13%	11%

Cost of goods sold	(984)	(1,130)	(1,330)	(1,465)	(1,571)	(1,652)
% of Revenue	62%	59%	56%	53%	51%	48%

Selling, G&A expenses	(203)	(245)	(303)	(352)	(397)	(440)
% of Revenue	13%	13%	13%	13%	13%	13%

Research & Development	(185)	(224)	(278)	(322)	(363)	(402)
% of Revenue	12%	12%	12%	12%	12%	12%

Net interest & other expenses	25	30	37	43	48	53
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(28)	(30)	(43)	(57)	(71)	(86)
Tax rate	12%	9%	9%	9%	9%	9%

Net profit	209	317	456	600	752	912
% Margin	13%	17%	19%	22%	24%	27%