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AAC Technologies
(OTC:AACAY)
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Rating:75Outperform
Price Target:
$5.50
▲(10.66% Upside)
Action:Reiterated
Date:05/14/26
Overall score is driven primarily by improving financial performance (profitability and cash flow strength) and upbeat 2026 guidance with strategic diversification. Offsetting factors are technically overextended momentum signals (RSI/Stoch) and some margin/cycle risks (gross margin erosion and smartphone-related uncertainty), while valuation is supportive based on the provided P/E and dividend yield.
Positive Factors
Revenue & profit recovery
Sustained top-line growth paired with a near-40% jump in net profit indicates the company converted higher sales into durable earnings improvement. This reduces cyclicality risk, supports reinvestment in higher-ASP product lines, and strengthens long-term cash flow generation capacity.
Negative Factors
Eroding gross margins
A multi-year decline in gross margin signals structural pricing, mix or cost pressures. Lower blended margins—driven partly by low-margin module businesses—constrain operating leverage and limit the company's ability to sustainably expand net margins without meaningful product mix improvement or cost reduction.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profit recovery
Sustained top-line growth paired with a near-40% jump in net profit indicates the company converted higher sales into durable earnings improvement. This reduces cyclicality risk, supports reinvestment in higher-ASP product lines, and strengthens long-term cash flow generation capacity.
Read all positive factors
AAC Technologies (AACAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.76B
Dividend Yield0.62%
Average Volume (3M)659.00
Price to Earnings (P/E)18.5
Beta (1Y)1.07
Revenue Growth16.68%
EPS Growth42.88%
CountryUS
Employees41,674
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.16
Shares Outstanding1,198,500,000
10 Day Avg. Volume1,480
30 Day Avg. Volume659
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)1.66
Price to Sales (P/S)1.27
P/FCF Ratio9.00
Enterprise Value/Market Cap8.70
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit7.37
Enterprise Value/Ebitda9.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.36
Revenue Forecast (FY)$5.33B
AAC Technologies Business Overview & Revenue Model
Company Description
AAC Technologies Holdings Inc., an investment holding company, provides sensory experience solutions in Greater China, the United States, Europe, Other Asian countries, and internationally. The company operates through Acoustics Product, PSS Aut...
How the Company Makes Money
AAC Technologies makes money by selling electronic components and integrated modules to device OEMs (and, where applicable, their supply chains) under manufacturing and supply agreements. Its revenue is primarily generated from: (1) Acoustic solut...
AAC Technologies Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong financial and operational accomplishments — double‑digit revenue growth, substantial net profit and cash flow expansion, rapid growth in EMD/PM and heat‑dissipation, major optics and sensor wins, and strategic M&A to enter data center cooling. Noted challenges include margin pressure in acoustics and optics modules, industry headwinds in smartphone shipments and memory volatility, and uncertain commercialization timelines for robotics/AR. On balance, the positive revenue, profitability, cash generation, and strategic diversification materially outweigh the issues highlighted.Positive Updates
Strong Revenue and Profit Growth
Group revenue of RMB 31.82 billion in 2025, up 16.4% year‑on‑year; gross profit RMB 7.02 billion, up 16% YoY; group gross profit margin 22.1% (flat YoY); net profit RMB 2.51 billion, up 39.8% YoY.
Negative Updates
Acoustics Revenue Growth Slow and Margin Pressure
Acoustics full‑year revenue rose modestly 1.7% to RMB 8.35 billion, with gross profit margin of 27.6% noted as lower than prior expectations; management attributed the decline to changes in customer/product mix and more module projects.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue and Profit Growth
Group revenue of RMB 31.82 billion in 2025, up 16.4% year‑on‑year; gross profit RMB 7.02 billion, up 16% YoY; group gross profit margin 22.1% (flat YoY); net profit RMB 2.51 billion, up 39.8% YoY.
Read all positive updates
Company Guidance
Management guided 2026 group revenue to grow about 16% while maintaining a gross profit margin of roughly 22% and driving further net‑profit improvement, backed by strong cash generation (2025 operating cash inflow RMB7.18bn, free cash flow RMB4.88bn, cash RMB8.61bn, CapEx ~RMB2.83bn). Segment guidance: PM/EMD (motors/mechanics & heat dissipation) is expected to deliver high growth (>30% revenue growth for PM in 2026) after heat‑dissipation revenue jumped >400% to RMB1.67bn in 2025 (VC shipments CAGR ~90% 2020–2025); metal frames were RMB3.82bn (+4.2%). Optics is expected to grow ~10% in 2026 with lens ASP +5–10%, a target lens gross margin of ~35% (7P/1G6P hybrid lens shipments ~15m in 2025) and improving module mix/OIS penetration. Sensors & semiconductors are guided to grow mid‑to‑high double digits (~15–20%), acoustics to see stable growth (2025 acoustics revenue RMB8.35bn; H2 RMB4.83bn; acoustics GPM 27.6%) and automotive acoustics to sustain double‑digit expansion with stable margins (2025 automotive revenue RMB4.11bn; H2 RMB2.3bn; automotive GPM 23.8%), as the company accelerates AI hardware, AR optics, data‑center cooling and automotive system rollouts.AAC Technologies Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.82B | 27.33B | 20.42B | 20.63B | 17.67B |
| Gross Profit | 7.02B | 6.04B | 3.45B | 3.78B | 4.36B |
| EBITDA | 5.48B | 5.55B | 4.18B | 4.25B | 4.02B |
| Net Income | 2.51B | 1.80B | 740.37M | 821.30M | 1.32B |
Balance Sheet | |||||
| Total Assets | 49.01B | 46.70B | 38.91B | 40.34B | 42.02B |
| Cash, Cash Equivalents and Short-Term Investments | 8.63B | 7.54B | 6.83B | 7.15B | 6.05B |
| Total Debt | 10.84B | 10.45B | 9.58B | 10.42B | 10.50B |
| Total Liabilities | 23.58B | 23.58B | 16.54B | 18.15B | 19.52B |
| Stockholders Equity | 24.37B | 22.75B | 21.88B | 21.66B | 21.81B |
Cash Flow | |||||
| Free Cash Flow | 4.50B | 2.93B | 3.09B | 2.45B | -1.17B |
| Operating Cash Flow | 7.18B | 5.20B | 4.63B | 4.37B | 2.18B |
| Investing Cash Flow | -3.95B | -3.49B | -1.51B | -2.35B | -4.25B |
| Financing Cash Flow | -2.11B | -1.02B | -3.17B | -1.44B | 632.55M |
AAC Technologies Technical Analysis
Negative
4.97
Price Trends
5.45
Negative
4.98
Negative
5.02
Negative
Market Momentum
-0.17
Positive
34.06
Neutral
3.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AACAY, the sentiment is Negative. The current price of 4.97 is below the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.45, and below the 200-day MA of 5.02, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 34.06 is Neutral, neither overbought nor oversold. The STOCH value of 3.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AACAY.
AAC Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.76B | 18.54 | 8.70% | 0.62% | 16.68% | 42.88% | |
72 Outperform | $62.40B | 129.15 | 30.68% | ― | 68.98% | ― | |
69 Neutral | $4.17B | 17.80 | 18.84% | 0.17% | 9.28% | 14.45% | |
67 Neutral | $4.41B | 276.54 | 21.07% | ― | 14.90% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $4.39B | -158.66 | -13.90% | ― | -0.69% | -3584.62% |
* Technology Sector Average
AACAY
AAC Technologies
4.93
-0.04
-0.80%
BDC
Belden
106.96
-15.07
-12.35%
EXTR
Extreme Networks
33.71
16.64
97.48%
LITE
Lumentum Holdings
802.01
709.77
769.48%
PI
IMPINJ
144.03
31.33
27.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.