AAC Technologies Holdings (2018) AI Stock Analysis

• Market Cap: $54.02B
• Dividend Yield: 0.51%
• Average Volume (3M): 6.07M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.82
• Revenue Growth: 31.55%
• EPS Growth: 141.88%
• Country: HK
• Employees: 37,273
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): 1.18
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 6,293,361
• 30 Day Avg. Volume: 6,066,982
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 10.19
• 1Y Price Target: $53.29
• Price Target Upside: 12.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: HK$43.00 ▼(-9.09% Downside)

AAC Technologies Holdings has a solid financial performance, evidenced by strong revenue growth and improving profitability. However, technical analysis shows mixed signals, with the stock trading near its 20-day moving average and only slight bullish momentum. The high P/E ratio and modest dividend yield further limit the stock's attractiveness.

Positive Factors

Market Position

Management reiterated its revenue guidance of 10-15% growth in 2025, highlighting AAC's leading market position with major clients.

Revenue Growth

AAC is expected to benefit from strong revenue and net profit growth driven by upgrades in acoustics and automotive products, as well as client wins in these sectors.

Technological Advancement

The company is well-positioned to capture growth opportunities in AI, foldable phones, AI glasses, and automotive and robotics sectors due to its technological leadership.

Negative Factors

Economic Factors

Global smartphone recovery is uncertain, which could impact AAC's anticipated earnings growth.

Market Risks

AAC's expansion into new strategic markets such as robotics, AI glasses, and automotives could pose integration challenges and execution risks.

Profitability Concerns

Although the optics segment showed improvement, there is an anticipated challenge in maintaining profitability across diverse segments.

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 design, manufacture, and sale of its high-tech components to major consumer electronics manufacturers around the world. The company's key revenue streams include sales of acoustic components, such as speakers and receivers, which are widely used in smartphones and other consumer electronics devices. Additionally, AAC Technologies generates revenue from its haptic feedback solutions, which are critical for enhancing user interaction in devices. The company also capitalizes on the increasing demand for miniature optical components and MEMS technologies, which are integral to the functionality and performance of modern electronic devices. Significant partnerships with leading smartphone brands further bolster its revenue by ensuring steady demand for its innovative components.

AAC Technologies Holdings Financial Statement Overview

Summary

AAC Technologies Holdings shows strong revenue growth and improving profitability metrics. However, increasing debt levels and negative free cash flow present 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: Positive
• Last Price: 47.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2018, the sentiment is Positive. The current price of 47.3 is above the 20-day moving average (MA) of 42.09, above the 50-day MA of 40.86, and above the 200-day MA of 39.66, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 68.44 is Neutral, neither overbought nor oversold. The STOCH value of 88.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2018.

AAC Technologies Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.30B	7.30	-7.27%	1.97%	7.76%	-6.42%
2018	61 Neutral	$54.02B	27.42	8.06%	0.51%	31.55%	141.88%
COBJF	―	$745.66M	―	-18.09%	1.29%	―	―
FXCXD	―	$1.46B	81.45	1.16%	―	―	―
VTKLF	―	$2.04B	12.92	24.32%	7.13%	―	―
YZOFF	―	$4.55B	11.70	6.68%	3.64%	―	―
ZTCOF	―	$22.32B	11.39	11.39%	3.20%	―	―

AAC Technologies Holdings Corporate Events

AAC Technologies Schedules Board Meeting for Interim Results

AAC Technologies Holdings Inc. has announced a board meeting scheduled for August 21, 2025, to approve the unaudited interim results for the first half of the year and consider an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

The most recent analyst rating on (HK:2018) stock is a Buy with a HK$61.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies Finalizes Acquisition of Acoustics Solutions International

AAC Technologies Holdings Inc. has completed the second tranche of its acquisition of Acoustics Solutions International B.V., making it an indirect wholly-owned subsidiary. This strategic acquisition, finalized with a purchase price of US$128.6 million, is expected to enhance AAC Technologies’ capabilities in acoustic solutions, potentially strengthening its market position and offering new growth opportunities.

The most recent analyst rating on (HK:2018) stock is a Buy with a HK$34.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies 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.