AAC Technologies Holdings (2018) AI Stock Analysis

• Market Cap: $48.91B
• Dividend Yield: 0.58%
• Average Volume (3M): 4.77M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.81
• Revenue Growth: 31.55%
• EPS Growth: 141.88%
• Country: HK
• Employees: 37,273
• Sector: Technology
• Sector Strength: 87
• Industry: Communication Equipment
• EPS (TTM): 1.18
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 3,804,225
• 30 Day Avg. Volume: 4,765,317
• PEG Ratio: 0.39
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $58.79
• Price Target Upside: 49.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: ―

AAC Technologies Holdings demonstrates strong financial performance, particularly in revenue growth and profitability. However, technical indicators show bearish trends, and the valuation does not offer significant upside potential. The lack of positive cash flow and increasing debt are notable risks.

Positive Factors

Earnings Growth

AAC reported a positive profit alert with earnings growth of 130-145% YoY, driven by global smartphone recovery and improving efficiency.

Market Positioning

The stock is trading at attractive valuations with expected EPS growth in the coming years, supporting the analyst's recommendation to buy.

Product Innovation

AAC is expected to benefit from content value increase in AI/foldable phones, AI smart glasses, and order wins in auto acoustics.

Negative Factors

Market Challenges

Slower-than-expected global AI smartphone adoption due to deteriorating consumer sentiment.

AAC Technologies Holdings Business Overview & Revenue Model

Company Description

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People's Republic of China, Taiwan, other Asian countries, the United States, and Europe. It operates through Acoustics Product, Electromagnetic Drives and Precision Mechanics, Optics Products, and Micro Electro-Mechanical System (MEMS) Components segments. The Acoustics Product segment provides acoustics products for smartphone and automotive, as well as wearables, tablets, and notebook markets. The Electromagnetic Drives and Precision Mechanics segment manufactures and sells haptic motors that are used in smartphones, smart watches, tablets, intelligent automobiles, smart glasses, game controllers, virtual reality/augmented reality (AR) controllers, and bone conduction headphones. This segment also offers precision mechanics comprising metal casing, bottom and parts for tablets, wearables, and notebooks products. The Optics Products segment provides plastic, front-view, surround-view, and occupant monitoring system and driver monitoring system vehicle lenses; camera modules; and voice coil motor and optical image stabilizer solutions. The MEMS Business segment offers MEMS microphone products for true wireless stereo earphones, smart speakers, tablets, and automotive markets. The company also offers research and development services; manufactures and sells tooling and precision components, electronic components, and related accessories; and provides electroplating services. AAC Technologies Holdings Inc. has a strategic partnership with Dispelix for providing AR and mixed reality solutions. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

AAC Technologies makes money primarily through the sale of its components to major consumer electronics manufacturers. By supplying essential parts such as speakers, microphones, and haptic devices, the company capitalizes on the growth of the smartphone and wearable technology markets. Its revenue streams are heavily reliant on large contracts with leading global technology brands, and its earnings are further bolstered by its continuous investment in R&D, allowing it to innovate and maintain a competitive edge in the fast-evolving tech landscape. Strategic partnerships and collaborations with these tech giants also play a significant role in driving revenue and expanding its market reach.

AAC Technologies Holdings Financial Statement Overview

Summary

AAC Technologies Holdings shows strong revenue growth and improving profitability with a solid balance sheet. However, increasing debt levels and negative free cash flow are potential risks.

Income Statement

AAC Technologies Holdings has demonstrated strong revenue growth of 33.79% from 2023 to 2024, alongside improving profitability with a gross profit margin of 22.11% and net profit margin of 6.58% in 2024. The EBIT margin has also increased to 7.61%, indicating enhanced operational efficiency. However, the EBITDA margin has slightly decreased compared to previous years, which may suggest rising operational costs or other financial pressures.

Balance Sheet

The company maintains a healthy equity ratio of 48.71%, indicating a stable financial structure with a strong equity base. The debt-to-equity ratio stands at 0.46, reflecting manageable leverage levels. The return on equity (ROE) is moderate at 7.89%, indicating decent profitability relative to shareholder investments. However, the company's total debt has increased over the years, which could pose a risk if not managed carefully.

Cash Flow

AAC Technologies Holdings shows a concerning lack of free cash flow growth, with free cash flow turning negative in recent years despite previously positive values. The operating cash flow to net income ratio is robust at 6.25 in 2023, suggesting strong cash generation from operations relative to net earnings. However, the absence of reported cash flow data for 2024 limits a comprehensive analysis of cash flow stability and growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.33B	20.42B	20.63B	17.67B	17.14B
Gross Profit	6.04B	3.45B	3.78B	4.36B	4.23B
EBITDA	4.75B	4.18B	4.25B	4.02B	3.65B
Net Income	1.80B	740.37M	821.30M	1.32B	1.51B
Balance Sheet
Total Assets	46.70B	38.91B	40.34B	42.02B	38.91B
Cash, Cash Equivalents and Short-Term Investments	7.54B	6.83B	7.15B	6.05B	7.54B
Total Debt	10.46B	9.58B	10.42B	10.50B	9.21B
Total Liabilities	23.58B	16.54B	18.15B	19.52B	17.09B
Stockholders Equity	22.75B	21.88B	21.66B	21.81B	21.16B
Cash Flow
Free Cash Flow	2.93B	3.09B	2.45B	-1.17B	-656.62M
Operating Cash Flow	5.20B	4.63B	4.37B	2.18B	3.59B
Investing Cash Flow	-3.49B	-1.51B	-2.35B	-4.25B	-3.26B
Financing Cash Flow	-1.02B	-3.17B	-1.44B	632.55M	2.58B

AAC Technologies Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2018, the sentiment is Neutral. The current price of 39.4 is below the 20-day moving average (MA) of 39.79, above the 50-day MA of 38.46, and above the 200-day MA of 38.02, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2018.

AAC Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2018	58 Neutral	$48.91B	24.82	8.06%	0.58%	31.55%	141.88%
Sector *	49 Neutral	C$2.96B	2.13	-80.92%	2.67%	12.55%	-24.47%
COBJF		$696.20M	―	-18.09%	1.29%	―	―
FXCXD		$1.02B	―	-1.35%	―	―	―
VTKLF		$1.86B	11.83	24.32%	6.54%	―	―
YZOFF		$3.12B	11.70	6.68%	4.72%	―	―
ZTCOF		$20.27B	12.45	11.39%	2.93%	―	―

AAC Technologies Holdings Corporate Events

AAC Technologies Grants Shares to Boost Talent Retention and Growth

AAC Technologies Holdings Inc. has announced the grant of 3,559,294 awarded shares to 536 employees under its 2016 Share Award Scheme, aiming to attract and retain key talent while promoting long-term growth. The awarded shares, representing approximately 0.297% of the company’s issued share capital, will vest over three years, contingent on performance targets and continued service, reflecting the company’s commitment to aligning employee incentives with organizational success.

The most recent analyst rating on (HK:2018) stock is a Buy with a HK$32.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies Secures Shareholder Approval for Key Resolutions at AGM

AAC Technologies Holdings Inc., a company incorporated in the Cayman Islands, announced that all proposed resolutions at their Annual General Meeting held on May 22, 2025, were approved by shareholders. Key resolutions included the approval of a final dividend, re-election of directors, re-appointment of auditors, and amendments to the share award scheme. The passing of these resolutions reflects shareholder support for the company’s strategic direction and governance, potentially strengthening its market position and operational stability.

The most recent analyst rating on (HK:2018) stock is a Buy with a HK$32.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies Announces Amendments to 2016 Share Award Scheme

AAC Technologies Holdings Inc. announced amendments to its 2016 Share Award Scheme, which is set to expire in March 2026. The amendments include removing clauses related to issuing new shares and allowing the transfer of shares held by the scheme trustee to other trustees for future share award schemes. These changes aim to improve the administration of the scheme and will not require shareholder approval.

AAC Technologies Announces 2025 AGM and Key Resolutions

AAC Technologies Holdings Inc. has announced its annual general meeting scheduled for May 22, 2025, in Hong Kong. Key resolutions include the approval of a final dividend of HK$0.24 per share, re-election of directors, and authorization for the board to manage director fees and share allotments. The meeting will also address the re-appointment of Deloitte Touche Tohmatsu as auditors, highlighting the company’s ongoing commitment to maintaining robust financial oversight and shareholder value.

AAC Technologies Completes $100M Share Buy-Back, Plans Further Repurchases

AAC Technologies Holdings Inc. has completed a US$100 million Automatic Share Buy-Back Program, repurchasing 19,676,000 shares, which accounts for 1.6417% of its total issued shares. The company has also announced a new share repurchase plan to buy back shares worth up to HK$1.2 billion over the next 12 to 18 months, reflecting confidence in its long-term business prospects and benefiting shareholders while maintaining a solid financial position.