Analysis and Risk Assessment of Lingyi Itech's Stock Performance and Acquisition of Liminda

• Lingyi Itech has seen a cumulative increase of 96.93% so far in 2025, with a current price of 15.40 yuan, a year-to-date high of 17.18 yuan, and a low of 6.74 yuan; the current price is slightly above the 20-day/60-day moving averages and also higher than its long-term moving average, indicating that the market still recognizes the company’s dual main business logic of ‘AI terminal + automotive/low-altitude’. [0]
• The price trend chart from 2024 to the present clearly shows that the stock price continued to rise after the middle of the year, with trading volume increasing at key stages. The annualized volatility is about 53.33%, and the maximum drawdown is -37.48%, reflecting that there is still a certain correction risk while the stock is rising strongly. [0]
  
  Illustration: X-axis is the date from January 2024 to December 2025, Y-axis is the stock price (yuan), with 20/60/120-day moving averages and trading volume bars overlaid. Source: Gilin AI Financial Database [0]

• The company plans to use its own funds of 875 million yuan to acquire a 35% stake in Dongguan Liminda, and obtain the voting rights of 17.78% of the shares through voting right entrustment, totaling 52.78% voting rights control. After completion, Liminda will be included in the consolidated financial statement system to enhance management control and profit synergy. [1]
• Liminda’s net assets as of the third quarter of 2025 were only 71 million yuan, and the shareholder’s equity value evaluated by the income method was 2.51 billion yuan, reflecting a premium of up to 3421.81%. Based on this, the acquisition corresponds to a PE ratio of over 120 times and a PB ratio of about 12.3 times, which is an obvious value-reconstruction-type control acquisition. [1]

1. Technology and Customer Synergy
   : Liminda has Nvidia AVL/RVL certification for key AI server thermal dissipation components such as liquid cooling quick-release connectors, liquid cooling manifolds, and high-performance busbars, and has served leading customers like Intel, BYD, and Foxconn, providing Lingyi Itech with an ‘entry ticket’ to enter the high-end server thermal dissipation supply chain. [2]
2. Strengthening Thermal Management and Power Supply Matrix
   : Lingyi Itech’s thermal management business contributed 4.107 billion yuan in revenue in 2024 (accounting for 9.29%), which is still in the early growth stage. After the acquisition, it can quickly expand liquid cooling and power supply product lines, enhance deep customer binding, and form a full-link solution with existing thermal dissipation products and AI terminal modules, promoting the implementation of high-power thermal dissipation needs in consumer electronics (especially high-performance AI terminals/PCs and XR devices). [3]
3. Operational Efficiency and Scale
   : Liminda has established bases at home and abroad, with module design, manufacturing, and certification capabilities. After being incorporated, it can save customer certification costs and supply chain delivery cycles, helping Lingyi Itech improve delivery stability and speed up new product responses among high-end consumer electronics customers.

• Capital Return Pressure from High Valuation
  : A valuation premium of over 3421% means that the acquisition has extremely high requirements for the realization of future profit contributions. The consumer electronics industry itself has order cycles greatly affected by new product iterations. Once customers are concentrated or orders are delayed, the investment payback period may be prolonged.
• Target Company’s Payment Collection/Working Capital Status
  : Liminda’s accounts receivable reached 282 million yuan in the third quarter of 2025, an increase of about 3 times year-on-year, with high accounts receivable occupation, implying that there may be low payment collection efficiency behind its growth. It is necessary to pay attention to the matching of accounts receivable, inventory, and cash flow of the group after integration. [2]

• From a strategic perspective, this transaction allows Lingyi Itech to gain Nvidia-level customers and key liquid cooling hardware in the consumer electronics track, strengthening its bargaining power in high-power thermal dissipation and module delivery for AI terminals, thus it is expected to further support the growth expectations of the ‘consumer electronics/AI terminal business’. However, due to the huge valuation premium and the rapid growth of the target’s accounts receivable, continuous attention needs to be paid to the integration progress, rolling customer orders, and cash flow performance to ensure that this heavy asset investment is converted into sustained revenue and profit contributions. If supporting orders from core customers are sufficiently released in the short term, the acquisition will significantly expand the company’s thermal management capabilities and accelerate penetration into high-end consumer electronics customers; otherwise, attention should be paid to the pressure on capital returns.

[0] Gilin AI Securities API and Python analysis results.
[1] East Money - “Lingyi Itech: Proposed Acquisition of 35% Equity in Liminda Electronic Technology Co., Ltd. for 875 Million Yuan” (https://finance.eastmoney.com/a/202512223598438355.html)
[2] Jiemian News - “Premium Exceeds 34 Times: Lingyi Itech Buys Nvidia ‘Entry Ticket’ for 875 Million Yuan” (https://m.jiemian.com/article/13800581.html)
[3] East Money Investor Relations Materials (PDF) - “Guangdong Lingyi Itech Co., Ltd.” (https://pdf.dfcfw.com/pdf/H2_AN202512231806532012_1.pdf)