Market RisksThe biggest risks are potential margin erosion due to the implementation of tariffs on China, prolonged macro pressures and increasing competition.
Sourcing StrategyGRGD’s heavy reliance on production in China (~75%) vs its peers may impact its pricing strategy, and a shift in sourcing may also impact its industry-leading supply chain advantage.
Tariff ExposureGDI has potential tariff exposure due to its sourcing from China and revenue from the U.S., which could be a headwind to near-term multiple expansion.