AAC Technologies Holdings Inc. (HK:2018)
:2018
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AAC Technologies Holdings
(2018)
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Rating:58Neutral
Price Target:
HK$43.00
▲(26.92% Upside)
Action:DowngradedDate:10/14/25
AAC Technologies' overall score of 58 is primarily driven by solid financial performance with strong revenue growth and profitability improvements, though tempered by significant debt levels. Technical indicators reflect bearish momentum, contributing to a lower score, while valuation remains reasonable but unremarkable. Financial performance remains the most impactful factor due to its higher weight.
Positive Factors
Revenue Growth
AAC Technologies' strong revenue growth indicates robust demand and successful market penetration, particularly in key product lines, which supports long-term business expansion.
Negative Factors
Rising Debt Levels
Increasing debt levels may strain AAC's financial flexibility, potentially impacting its ability to invest in growth opportunities and manage economic downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
AAC Technologies' strong revenue growth indicates robust demand and successful market penetration, particularly in key product lines, which supports long-term business expansion.
Read all positive factors
AAC Technologies Holdings (2018) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$39.54B
Dividend Yield0.63%
Average Volume (3M)7.19M
Price to Earnings (P/E)6.3
Beta (1Y)0.98
Revenue Growth30.73%
EPS Growth90.08%
CountryHK
Employees37,273
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)1.62
Shares Outstanding1,198,500,000
10 Day Avg. Volume6,141,854
30 Day Avg. Volume7,188,178
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.82
Price to Sales (P/S)1.51
P/FCF Ratio14.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$50.55Price Target Upside49.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)2.34
Revenue Forecast (FY)HK$35.73B
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 generates revenue primarily through the sale of its acoustic and optical components to major consumer electronics manufacturers. The company's revenue model is heavily reliant on contracts and partnerships with leading smartphone ...
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
75
Positive
Balance Sheet
65
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.74B | 27.33B | 20.42B | 20.63B | 17.67B | 17.14B |
| Gross Profit | 5.00B | 6.04B | 3.45B | 3.78B | 4.36B | 4.23B |
| EBITDA | 3.78B | 4.75B | 4.18B | 4.25B | 4.02B | 3.65B |
| Net Income | 1.70B | 1.80B | 740.37M | 821.30M | 1.32B | 1.51B |
Balance Sheet | ||||||
| Total Assets | 47.03B | 46.70B | 38.91B | 40.34B | 42.02B | 38.91B |
| Cash, Cash Equivalents and Short-Term Investments | 7.76B | 7.54B | 6.83B | 7.15B | 6.05B | 7.54B |
| Total Debt | 11.12B | 10.46B | 9.58B | 10.42B | 10.50B | 9.21B |
| Total Liabilities | 23.27B | 23.58B | 16.54B | 18.15B | 19.52B | 17.09B |
| Stockholders Equity | 23.29B | 22.75B | 21.88B | 21.66B | 21.81B | 21.16B |
Cash Flow | ||||||
| Free Cash Flow | 708.67M | 2.93B | 3.09B | 2.45B | -1.17B | -656.62M |
| Operating Cash Flow | 1.28B | 5.20B | 4.63B | 4.37B | 2.18B | 3.59B |
| Investing Cash Flow | -520.52M | -3.49B | -1.51B | -2.35B | -4.25B | -3.26B |
| Financing Cash Flow | -877.30M | -1.02B | -3.17B | -1.44B | 632.55M | 2.58B |
AAC Technologies Holdings Technical Analysis
Negative
33.88
Price Trends
35.45
Negative
37.07
Negative
39.73
Negative
Market Momentum
-0.38
Negative
47.92
Neutral
55.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2018, the sentiment is Negative. The current price of 33.88 is above the 20-day moving average (MA) of 33.51, below the 50-day MA of 35.45, and below the 200-day MA of 39.73, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 55.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | HK$15.37B | 6.79 | 22.90% | 7.66% | -0.99% | -10.43% | |
68 Neutral | HK$533.26M | 7.47 | 11.92% | 2.53% | 19.80% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | HK$39.54B | 6.27 | 8.59% | 0.63% | 30.73% | 90.08% | |
56 Neutral | HK$14.68B | 37.28 | 3.51% | ― | 3.21% | ― | |
54 Neutral | HK$4.68B | 211.00 | -11.77% | 0.24% | -13.99% | -32.74% | |
52 Neutral | HK$603.89M | -58.01 | -0.25% | ― | 5.59% | -101.17% |
* Technology Sector Average
HK:2018
AAC Technologies Holdings
33.88
>-0.01
-0.01%
HK:2342
Comba Telecom Systems Holdings
1.50
0.19
14.85%
HK:2038
FIH Mobile
19.74
12.44
170.41%
HK:2000
SIM Technology Group
0.29
-0.05
-14.71%
HK:0303
VTech Holdings
60.65
18.66
44.42%
HK:1473
Pangaea Connectivity Technology Limited
0.46
0.31
203.33%
AAC Technologies Holdings Corporate Events
AAC Technologies Renews Key Operational Agreements for Continued Growth
Dec 16, 2025
AAC Technologies Holdings has announced the renewal of its Master Lease and Master Purchase Agreements, effective from December 16, 2025, to ensure the continuity of its production and operational activities. These agreements, involving connected ...
AAC Technologies Updates Nomination Committee Terms
Dec 16, 2025
AAC Technologies Holdings has updated the terms of reference for its Nomination Committee, which assists the Board in policy formulation and recommendations regarding the nomination and succession of Directors, particularly for the Chairman and CE...
AAC Technologies Updates Audit and Risk Committee Terms
Dec 16, 2025
AAC Technologies Holdings has revised its Audit and Risk Committee Terms of Reference, which were initially adopted in 2005 and have undergone several revisions, the latest being in December 2025. The Committee is tasked with overseeing the compan...
AAC Technologies Enhances Board Duties for Stronger Governance
Dec 16, 2025
AAC Technologies Holdings Inc. has revised its Terms of Reference for the Board and Directors’ Duties, emphasizing enhanced corporate governance and compliance practices. The updated duties include ensuring compliance with statutory and regu...
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.