AAC Technologies Holdings (2018) AI Stock Analysis

• Market Cap: $54.28B
• Dividend Yield: 0.52%
• Average Volume (3M): 8.18M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.81
• Revenue Growth: 30.73%
• EPS Growth: 90.08%
• Country: HK
• Employees: 37,273
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.83
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 9,237,551
• 30 Day Avg. Volume: 8,183,097
• PEG Ratio: 0.14
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 14.10
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 10.28
• Enterprise Value/Ebitda: 13.59
• 1Y Price Target: $59.38
• Price Target Upside: 29.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: HK$48.00 ▲(4.85% Upside)

AAC Technologies Holdings' overall score is driven by strong financial performance and positive earnings call sentiment. However, technical indicators suggest potential overbought conditions, and valuation metrics indicate the stock may be overvalued, which tempers the overall score.

Positive Factors

Negative Factors

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 in recent years present potential 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	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

• Technical Analysis Sentiment: Positive
• Last Price: 45.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 45.78 is above the 20-day moving average (MA) of 45.24, above the 50-day MA of 44.42, and above the 200-day MA of 41.73, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 31.28 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0763	79 Outperform	HK$228.41B	20.92	10.66%	1.83%	3.16%	-19.51%
0303	74 Outperform	$16.00B	13.07	24.32%	7.66%	1.05%	-6.29%
2018	69 Neutral	$54.28B	23.43	9.39%	0.52%	30.73%	90.08%
6869	62 Neutral	$62.21B	58.93	5.20%	0.59%	12.11%	-44.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2038	59 Neutral	$13.71B	106.90	1.16%	―	3.21%	―
2342	54 Neutral	HK$10.47B	―	-10.70%	0.18%	-13.99%	-32.74%

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.

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.

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.

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.