New stock preview | Three major highlights of the Hong Kong-listed Wuxi Best Precision Machinery, the world's largest supplier of acoustic enhancement materials.

The world's largest acoustic enhancement material supplier, with a nearly doubled revenue in the first three quarters of 2025 compared to previously, and holding a leading position in multiple business areas, will Wuxi Best Precision Machinery's listing on the Hong Kong Stock Exchange bring investment opportunities? It is known that recently Wuxi Best Precision Machinery submitted its listing application to the main board of the Hong Kong Stock Exchange, with Guotai Haitong acting as its exclusive sponsor. The company is a supplier of electronic functional enhancement materials, and according to Frost & Sullivan data, based on revenue for the first half of 2025, it ranks first in the global acoustic enhancement materials market with a market share of 18.1% and fourth in the global acoustic adhesive market with a market share of approximately 3.5%. The company's electronic functional enhancement materials are mainly used to improve the acoustic, optical, thermal, and electrical performance of components and equipment in consumer electronics products and the new energy field. The revenue growth for the first three quarters of 2024 and 2025 increased by 11% and 99.1% respectively, while the net profit margin was 31.7% and 25.7% respectively, showing a slight decrease in profitability. As of November 2025, the company had cash and cash equivalents of 133 million yuan. Before going public in Hong Kong, the company had attempted to list on the A-share market in the Shenzhen Stock Exchange, appointing Guotai Junan as the counseling company in 2021, completing the acceptance in 2022, but adjusted its listing plan based on the market conditions. This listing in Hong Kong is friendly to new stocks due to the new rules of the Hong Kong stock market, with a more complete pricing mechanism, and can attract global investors to build an overseas listing platform in preparation for accelerating globalization expansion. Diversified businesses drive a significant increase in performance, with the top five customers contributing about eighty percent It is understood that Wuxi Best Precision Machinery is mainly engaged in the development, manufacturing, and sales of electronic functional enhancement materials, having built three core technology platforms, namely the inorganic powder technology platform, polymer material technology platform, and composite material technology platform, forming four major businesses including acoustic enhancement materials, electronic ceramic materials, electronic adhesives, and energy enhancement materials, with electronic ceramic materials generating revenue in 2025 and becoming the third largest source of revenue. From a business perspective, the company has been exploring the field of acoustic materials since 2017, actively seizing key opportunities for the iterative upgrade of the consumer electronics industry. In the first half of 2025, its revenue in the field of acoustic enhancement materials ranked first globally. This business also accounts for the majority of the company's revenue, with business revenue of 222 million yuan in the first three quarters of 2025, a significant increase of 66.9%, but due to the addition of new revenue businesses, the revenue proportion has decreased to 48.4%. The electronic ceramic materials business is a new source of revenue for the company. In fact, as early as 2021, relying on its technical expertise in ceramic powder synthesis and ultrafine powder processing and manufacturing, the company began exploring opportunities for cross-industry applications in new energy vehicles and photovoltaics. In 2024, the company strategically acquired Zhejiang Aike New Materials and recorded revenue in the 2025. The first three quarters of 2025 saw revenue of 95 million yuan from this business, accounting for 20.6% of the revenue. The company began to develop energy enhancement materials in 2022 and established a carbon-neutral advanced material joint research and development center with top universities, breaking through the high-temperature sintering technology of inorganic glass powder and leading the formulation of the group standard for "backboard glass enhancement anti-glaze material", holding a certain industry position. The revenue growth of this business is relatively steady, with revenue of 128 million yuan in the first three quarters of 2025, an increase of 39.4%, accounting for 27.7% of the revenue. In addition, the electronic adhesive business has a relatively low revenue share, with products mainly divided into acoustic adhesives and optical adhesives, widely used in smartphones and other smart terminal devices. Revenue for the first three quarters of 2025 was 15 million yuan, accounting for only 3.3% of the revenue. However, according to Frost & Sullivan's data, based on revenue in the first half of 2025, the company's acoustic adhesive products rank fourth globally, with a market share of 3.5%. It is worth noting that Wuxi Best Precision Machinery has a high concentration of customers, with the top five customers contributing 88.2%, 82.3%, and 79.0% of revenue in the first three quarters of 2023 to 2025, respectively, with the largest customer contributing over 20%. Most of the company's customers are domestic, with domestic revenue accounting for over 80% in previous years, but overseas revenue growth is remarkable, accounting for 16.6% in the first three quarters of 2025, an increase of 7 percentage points compared to 2023. In terms of profitability, the company's gross margin was 54%, 56.1%, and 46.1% in the first three quarters of 2023 to 2025, with a significant decrease in gross margin in the first three quarters of 2025, mainly due to two factors: the addition of revenue from electronic ceramic materials, with a gross margin of 21.7%, significantly lower than the core electronic ceramic materials business; and the gross margin of energy enhancement materials decreased from 10.4% to 0.8%. However, the company's operating expenses remained stable, with sales expenses accounting for around 3%, a decrease of 1-2 percentage points in management expenses, and research and development expenses accounting for 11-12% in 2023-2024, with a significant decrease in the first three quarters of 2025 at 7.1%, a year-on-year decrease of 5.8 percentage points. Overall profitability is mainly affected by gross margin, with a net profit margin of 25.7% in the first three quarters of 2025, stable compared to previous years but showing a slight decrease. With a leading position in multiple fields, the listing presents three key points From an industry perspective, Wuxi Best Precision Machinery's core business in acoustic enhancement materials relies heavily on the shipment scale of consumer electronics smart terminals. According to Frost & Sullivan, the global consumer electronics terminal shipment growth rate is slow, with a compound annual growth rate of only 3.3% between 2024 and 2030. However, with the systematic upgrades in AI capabilities, opportunities exist in segmented scenarios, such as AI glasses/XR devices, which will achieve double-digit compound growth. The company's electronic ceramic materials business is in the field of electronic ceramic powders, with a relatively small market size. The global core electronic ceramic powder market size was only 18.1 billion yuan in 2024, but it has seen a compound growth rate of 17.1% in the past five years, and it is estimated to reach 52.8 billion yuan by 2030 with a compound growth rate of 19.6%. In addition, the electronic adhesive industry is also a small-scale industry, with a global market size of 38.2 billion yuan in 2024, maintaining a single-digit compound growth rate. Wuxi Best Precision Machinery's core products hold a leading position in various industries, with the acoustic enhancement materials industry having a high degree of concentration, the top five global participants holding a market share of 64.2%, the company maintaining a leading position with a market share of 18.1%, 4.6 percentage points higher than the second place; and the global market for LIB diaphragm-coated alumina ceramic materials also has a high concentration, with the top five participants holding a market share of 75.1%, with the company ranking second. The company has industry-scale advantages and sufficient production capacity to meet market demand. As of September 2025, it has two production bases in China, in Zhenjiang and Ningbo, with designed capacities and capacity utilization rates of 30,000 kg and 96.7% for acoustic enhancement materials, 6,000,000 kg and 75.7% for electronic ceramic materials, 75,000 kg and 83.3% for electronic adhesives, and 750,000 kg and 66.7% for energy enhancement materials. Furthermore, the company's finances are relatively clean, with only 46 million yuan in borrowings as of November 2025, and the company's business has the ability to generate cash flow, with a net inflow of operating cash flow of 57 million yuan in the first three quarters of 2025. In 2023, 2024, and up to November 2025, its net balance of current assets was 397 million yuan, 481 million yuan, and 636 million yuan respectively. The company's sound financial and cash flow position provides a safety cushion for its global expansion. In conclusion, the main points of interest for Wuxi Best Precision Machinery are threefold: high revenue growth or sustainability, with the core acoustic enhancement materials maintaining a leading position in the industry and gaining more development opportunities in niche scenarios with the advancement of AI; high profitability and good expense control, with room for improvement in gross margin; low debt ratio, positive net operating cash flow, and high cash flow coverage, leveraging its production capacity and business advantages for global expansion. Of course, Wuxi Best Precision Machinery also has risks, such as slow industry growth and high concentration of customers. Considering the key points and risks of this Hong Kong listing, if the valuation is reasonable, Wuxi Best Precision Machinery may be a good investment target.