AAC Technologies Holdings Inc. (HK:2018)
:2018
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AAC Technologies Holdings
(2018)
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Rating:77Outperform
Price Target:
HK$49.00
▲(28.88% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improving financial performance (stronger revenue, margins, and cash generation) and attractive valuation (low P/E). Technicals are supportive with an established uptrend and healthy momentum. Earnings-call guidance is constructive for 2026, partially tempered by margin pressure in acoustics/modules and broader smartphone end-market uncertainty.
Positive Factors
Stronger Cash Generation
Sustained positive operating and free cash flow restores financial flexibility, funds capex, R&D and strategic M&A without external financing. Over 2–6 months this strengthens the firm's ability to invest in automation, scale higher‑margin lines and withstand cyclical downturns.
Negative Factors
Acoustics Margin Pressure
Core acoustics exhibit slow growth and margin erosion as mix shifts to lower‑margin module projects. Given acoustics are a longstanding revenue base, persistent low growth and mix pressure could cap group margins and cash conversion unless offset by faster scale in higher‑margin segments.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger Cash Generation
Sustained positive operating and free cash flow restores financial flexibility, funds capex, R&D and strategic M&A without external financing. Over 2–6 months this strengthens the firm's ability to invest in automation, scale higher‑margin lines and withstand cyclical downturns.
Read all positive factors
AAC Technologies Holdings (2018) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$50.09B
Dividend Yield0.63%
Average Volume (3M)7.19M
Price to Earnings (P/E)6.3
Beta (1Y)0.99
Revenue Growth16.62%
EPS Growth42.86%
CountryHK
Employees37,273
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)1.78
Shares Outstanding1,198,500,000
10 Day Avg. Volume6,141,854
30 Day Avg. Volume7,188,178
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.66
Price to Sales (P/S)1.30
P/FCF Ratio8.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$51.05Price Target Upside34.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)2.35
Revenue Forecast (FY)HK$35.82B
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...
How the Company Makes Money
AAC Technologies makes money primarily by manufacturing and selling hardware components and modules to consumer-electronics OEMs and their supply chains, with revenue recognized from product shipments under customer purchase orders/longer-term sup...
AAC Technologies Holdings Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a positive transformation story: solid revenue growth (+16.4%), strong net profit expansion (+39.8%), significant cash‑flow improvement, and breakout growth in strategic areas (heat dissipation +400%+, sensors +103%). Management provided constructive 2026 targets and segment guidance (e.g., PM >30% revenue growth, optics ASP/gross‑margin improvement). Remaining concerns are concentrated in modest growth and margin pressure in the traditional acoustics/modules lines, industry headwinds for smartphone volumes, and unclear near‑term monetization timelines for robotics/AR. On balance, the positive operational and financial momentum and sizeable wins across new high‑margin categories outweigh the headwinds and uncertainties.Positive Updates
Strong Top-Line Growth
Group revenue RMB 31.82 billion in 2025, up 16.4% year‑on‑year, driven by diversified product mix and growth beyond traditional mobile-phone exposure.
Negative Updates
Acoustics Revenue Growth Sluggish and Margin Pressure
Acoustics full‑year revenue RMB 8.35 billion, up only 1.7% YoY; H2 up 1.6%. Gross profit margin at 27.6% declined due to changes in customer and product mix toward more module projects; management noted acoustics margin was below some expectations.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Group revenue RMB 31.82 billion in 2025, up 16.4% year‑on‑year, driven by diversified product mix and growth beyond traditional mobile-phone exposure.
Read all positive updates
Company Guidance
Management gave 2026 targets and segment guidance: at the company level they’re targeting ~16% revenue growth for 2026 and to maintain a "22%-odd" group gross margin with net profit and margins continuing to improve (2025 free operating cash flow was RMB7.3bn and CapEx RMB2.8bn). By segment, PM/EMD (motors/heat-dissipation) is expected to grow >30% in revenue in 2026 with gross margins rising from 2025 levels; Optics is guided to ~10% revenue growth with ASP up ~5–10%, plastic‑lens gross margin targeted ~30–35% (optics overall GP margin was 11.5% in 2025 and modules’ GP was ~4–5% in 2025); Sensors & Semiconductors are guided to mid‑ to high‑teens growth (~15–20%); Automotive acoustics to maintain double‑digit revenue growth with relatively stable gross margin; and Acoustics more broadly to deliver stable growth with improving margins. Management also highlighted heat‑dissipation VC: a near‑90% CAGR from 2020–2025 and continued rapid expansion with ambition to scale that business toward a potential ~RMB10bn product line over the coming years.AAC Technologies Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 30.99B | 27.33B | 20.42B | 20.63B | 17.67B |
| Gross Profit | 6.54B | 6.04B | 3.45B | 3.78B | 4.36B |
| EBITDA | 5.49B | 4.75B | 4.18B | 4.25B | 4.02B |
| Net Income | 2.45B | 1.80B | 740.37M | 821.30M | 1.32B |
Balance Sheet | |||||
| Total Assets | 49.00B | 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 | 10.83B | 10.46B | 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 Holdings Technical Analysis
Positive
38.02
Price Trends
36.32
Positive
37.11
Positive
39.51
Positive
Market Momentum
1.77
Negative
62.07
Neutral
76.09
Neutral
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 38.02 is below the 20-day moving average (MA) of 39.41, above the 50-day MA of 36.32, and below the 200-day MA of 39.51, indicating a bullish trend. The MACD of 1.77 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 76.09 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$50.09B | 6.27 | 8.59% | 0.63% | 16.62% | 42.86% | |
69 Neutral | HK$16.03B | 6.79 | 22.90% | 7.66% | -1.00% | -10.43% | |
68 Neutral | HK$568.42M | 7.47 | 11.92% | 2.53% | 19.80% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | HK$22.28B | 10.58 | 3.51% | ― | 16.73% | ― | |
54 Neutral | HK$4.46B | -70.76 | -11.77% | 0.24% | 0.94% | ― | |
54 Neutral | HK$562.24M | -8.74 | -0.25% | ― | -7.14% | 85.97% |
* Technology Sector Average
HK:2018
AAC Technologies Holdings
42.84
4.29
11.12%
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240.60%
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0.27
-0.05
-17.19%
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Pangaea Connectivity Technology Limited
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0.44
293.33%
AAC Technologies Holdings Corporate Events
AAC Technologies Sets 2026 AGM to Approve Dividend, Board Mandates and Share Issuance Limits
Apr 27, 2026
AAC Technologies has called its 2026 annual general meeting for 21 May in Hong Kong, where shareholders will review the 2025 audited financial statements and vote on a proposed final dividend of HK$0.35 per share. The agenda also includes re-elect...
AAC Technologies Posts Strong 2025 Results as It Accelerates AI-Focused Transformation
Mar 19, 2026
AAC Technologies reported strong 2025 results, with revenue up 16.4% to RMB 31.82 billion and net profit jumping 39.8% as margins improved and operating cash flow hit a record, supporting a sharply higher final dividend. Management said the group ...
AAC Technologies Proposes Final HKD 0.35 Dividend for 2025
Mar 19, 2026
AAC Technologies Holdings Inc. has proposed a final ordinary cash dividend of HKD 0.35 per share for the financial year ended 31 December 2025, subject to shareholder approval at a later date. The dividend will be paid in Hong Kong dollars, with a...
AAC Technologies Sets March 2026 Board Meeting to Approve 2025 Results and Mull Final Dividend
Mar 9, 2026
AAC Technologies Holdings Inc. has scheduled a board meeting for 19 March 2026 to review and approve the audited annual results for the financial year ended 31 December 2025. At the same meeting, directors will also consider whether to recommend a...
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.