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AAC Technologies Holdings
(2018)
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Rating:77Outperform
Price Target:
HK$44.00
▲(15.73% 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
Improved cash generation
Sustained, materially higher operating cash flow and FCF provide durable financial flexibility to fund capex, R&D and strategic M&A while deleveraging. Positive cash conversion reduces refinance risk in cyclical downturns and supports reinvestment into higher‑margin businesses.
Negative Factors
Low module margins
Persistently low module economics materially compress group profitability despite revenue growth. Modules are volume‑sensitive and margin‑thin, so continued reliance on module sales limits overall margin expansion and reduces return on incremental capex invested in module capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Sustained, materially higher operating cash flow and FCF provide durable financial flexibility to fund capex, R&D and strategic M&A while deleveraging. Positive cash conversion reduces refinance risk in cyclical downturns and supports reinvestment into higher‑margin businesses.
Read all positive factors
AAC Technologies Holdings (2018) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$45.09B
Dividend Yield0.91%
Average Volume (3M)7.19M
Price to Earnings (P/E)18.6
Beta (1Y)1.01
Revenue Growth16.62%
EPS Growth42.86%
CountryHK
Employees41,674
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)1.80
Shares Outstanding1,198,500,000
10 Day Avg. Volume6,141,854
30 Day Avg. Volume7,188,178
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)1.66
Price to Sales (P/S)1.27
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$57.27Price Target Upside50.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.4
Revenue Forecast (FY)HK$36.02B
AAC Technologies Holdings Business Overview & Revenue Model
Company Description
AAC Technologies Holdings Inc., an investment holding company, delivers comprehensive solutions for smart devices across an expansive global footprint, including Mainland China, Hong Kong, Taiwan, other parts of Asia, the United States, and Europe...
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 | 31.82B | 27.33B | 20.42B | 20.63B | 17.67B |
| Gross Profit | 7.02B | 6.04B | 3.45B | 3.78B | 4.36B |
| EBITDA | 5.28B | 4.75B | 4.18B | 4.25B | 4.02B |
| Net Income | 2.51B | 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
Negative
38.02
Price Trends
42.92
Negative
39.11
Negative
39.20
Negative
Market Momentum
-1.42
Positive
40.85
Neutral
44.18
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 38.02 is below the 20-day moving average (MA) of 41.73, below the 50-day MA of 42.92, and below the 200-day MA of 39.20, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 44.18 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$45.09B | 18.58 | 8.70% | 0.63% | 16.62% | 42.86% | |
68 Neutral | HK$1.52B | 34.49 | 11.92% | 2.53% | 4.77% | 20.26% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | HK$13.70B | 13.01 | 21.16% | 7.66% | -6.75% | -14.48% | |
53 Neutral | HK$2.56B | 66.67 | -11.77% | 0.24% | 0.94% | ― | |
53 Neutral | HK$541.42M | -41.94 | -0.25% | ― | -7.14% | 85.97% | |
47 Neutral | HK$12.79B | 32.70 | 3.51% | ― | 16.73% | ― |
* Technology Sector Average
HK:2018
AAC Technologies Holdings
38.64
-0.94
-2.37%
HK:2342
Comba Telecom Systems Holdings
0.82
-1.09
-56.96%
HK:2038
FIH Mobile
17.20
3.56
26.07%
HK:2000
SIM Technology Group
0.26
-0.03
-11.86%
HK:0303
VTech Holdings
54.05
-1.38
-2.48%
HK:1473
Pangaea Connectivity Technology Limited
1.29
1.11
616.67%
AAC Technologies Holdings Corporate Events
AAC Technologies Wins Shareholder Backing for Dividend, Board Mandates at AGM
May 21, 2026
AAC Technologies Holdings reported that all resolutions at its 21 May 2026 annual general meeting were approved by shareholders via poll, confirming its 2025 audited financial statements and the reappointment of Deloitte Touche Tohmatsu as auditor...
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...
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.