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AAC Technologies Holdings Inc. (HK:2018)
:2018
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AAC Technologies Holdings (2018) AI Stock Analysis

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HK:2018

AAC Technologies Holdings

(OTC:2018)

Rating:68Neutral
Price Target:
HK$44.00
▲(10.00%Upside)
The overall stock score of 68 reflects strong financial performance with solid growth and profitability, but is tempered by increased debt and negative cash flow. Technical indicators suggest moderate bullish momentum, while valuation metrics indicate potential overvaluation.
Positive Factors
Earnings Growth
AAC reported a positive profit alert with earnings growth of 130-145% driven by global smartphone recovery and spec upgrades.
Market Expansion
AAC is set to benefit from the growing humanoid robot market, leveraging its expertise in acoustic components and precision mechanics.
Product Launches
Upcoming catalysts for AAC include AI/foldable phone launches, new AI glasses, and auto acoustics order wins.
Negative Factors
Consumer Sentiment
Slower-than-expected global AI smartphone adoption due to deteriorating consumer sentiment.

AAC Technologies Holdings (2018) vs. iShares MSCI Hong Kong ETF (EWH)

AAC Technologies Holdings Business Overview & Revenue Model

Company DescriptionAAC Technologies Holdings Inc. is a leading global provider of advanced miniaturized technology components for the consumer electronics industry. Established in 1993, the company operates in sectors such as acoustics, optics, electromagnetic drives and precision mechanics, and MEMS (Micro-Electro-Mechanical Systems) solutions. It supplies high-performance components to major smartphone manufacturers, including acoustic components like speakers and receivers, haptic feedback systems, and miniature optical components.
How the Company Makes MoneyAAC 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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.33B20.42B20.63B17.67B17.14B
Gross Profit6.04B3.45B3.78B4.36B4.23B
EBITDA4.75B4.18B4.25B4.02B3.65B
Net Income1.80B740.37M821.30M1.32B1.51B
Balance Sheet
Total Assets46.70B38.91B40.34B42.02B38.91B
Cash, Cash Equivalents and Short-Term Investments7.54B6.83B7.15B6.05B7.54B
Total Debt10.46B9.58B10.42B10.50B9.21B
Total Liabilities23.58B16.54B18.15B19.52B17.09B
Stockholders Equity22.75B21.88B21.66B21.81B21.16B
Cash Flow
Free Cash Flow2.93B3.09B2.45B-1.17B-656.62M
Operating Cash Flow5.20B4.63B4.37B2.18B3.59B
Investing Cash Flow-3.49B-1.51B-2.35B-4.25B-3.26B
Financing Cash Flow-1.02B-3.17B-1.44B632.55M2.58B

AAC Technologies Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price40.00
Price Trends
50DMA
39.27
Positive
100DMA
40.99
Negative
200DMA
38.79
Positive
Market Momentum
MACD
0.14
Positive
RSI
50.03
Neutral
STOCH
24.27
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 40 is below the 20-day moving average (MA) of 40.31, above the 50-day MA of 39.27, and above the 200-day MA of 38.79, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 24.27 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$172.98B14.1111.39%0.10%-2.65%-14.96%
74
Outperform
$14.23B11.6524.32%0.15%1.05%-6.29%
68
Neutral
$47.43B23.688.06%0.02%31.55%141.88%
67
Neutral
$25.51B19.386.68%0.07%0.24%-31.74%
59
Neutral
$10.02B-1.35%-11.86%83.13%
57
Neutral
HK$14.57B5.76-5.77%4.75%9.65%-43.80%
55
Neutral
HK$5.62B-18.09%1.26%-24.30%-10350.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2018
AAC Technologies Holdings
40.20
11.53
40.23%
HK:2342
Comba Telecom Systems Holdings
1.80
0.92
104.55%
HK:0303
VTech Holdings
56.25
10.35
22.56%
HK:0763
ZTE
26.45
9.51
56.14%
HK:2038
FIH Mobile
13.36
5.46
69.11%
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
20.05
12.28
157.88%

AAC Technologies Holdings Corporate Events

AAC Technologies Grants Shares to Boost Talent Retention and Growth
May 23, 2025

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
May 22, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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.

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.Date of analysis: Jul 25, 2025