Analyst Alex NG from CMB International Securities maintained a Buy rating on AAC Technologies Holdings (AACAF – Research Report) and increased the price target to HK$58.78 from HK$53.48.
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Alex NG’s rating is based on AAC Technologies Holdings’ impressive financial performance and strategic positioning in the market. The company reported significant growth in revenue and net profit for the second half of 2024, exceeding both internal and consensus expectations. This growth was driven by strong performance across all business segments, including acoustics, optics, and electronic devices, with notable improvements in gross profit margins.
AAC Technologies is well-positioned to benefit from the upcoming upgrade cycle in AI smartphones, AI glasses, and edge AI devices, as well as gaining market share in automotive acoustics. The management’s guidance for double-digit revenue growth in 2025, along with expected margin improvements, supports a positive outlook. Consequently, the target price for AAC Technologies has been raised, reflecting a strong earnings growth forecast for the coming years. These factors collectively justify the Buy rating given by Alex NG.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$56.00 price target.