AAC Technologies Holdings (2018) AI Stock Analysis

• Market Cap: $46.95B
• Dividend Yield: 0.63%
• Average Volume (3M): 7.19M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.88
• Revenue Growth: 30.73%
• EPS Growth: 90.08%
• Country: HK
• Employees: 37,273
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.85
• Shares Outstanding: 1,198,500,000
• 10 Day Avg. Volume: 6,141,854
• 30 Day Avg. Volume: 7,188,178
• 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: 1.09
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 10.28
• Enterprise Value/Ebitda: 13.59
• 1Y Price Target: $59.39
• Price Target Upside: 53.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: HK$44.00 ▲(13.64% Upside)

AAC Technologies Holdings' strong financial performance and positive earnings call outlook are offset by bearish technical indicators and moderate valuation. The company's growth potential is promising, but rising debt and cash flow concerns warrant caution.

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.

Optics Business Profitability

The improved profitability in the optics business reflects AAC's competitive edge in high-demand segments, enhancing its earnings potential and market position.

Strategic Expansion

Strategic acquisitions bolster AAC's capabilities in automotive and optics, positioning it for sustained growth in emerging high-value markets.

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.

Negative Free Cash Flow

Negative free cash flow could limit AAC's ability to fund operations and strategic initiatives, posing a risk to its long-term financial health and growth prospects.

Gross Profit Margin Pressure

Pressure on gross profit margins suggests potential challenges in maintaining cost efficiency, which could affect AAC's profitability if not addressed.

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 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 and electronics brands, which account for a significant portion of its sales. Key revenue streams include the sale of miniature speakers and microphones, which are integral to mobile devices, as well as haptic feedback technologies that enhance user interaction. Additionally, AAC has expanded its offerings to include optical components for cameras in smartphones, capitalizing on the growing demand for high-quality imaging. Strategic partnerships with major manufacturers, continuous innovation in product development, and a focus on high-volume production capabilities contribute to its earnings, enabling the company to maintain a competitive edge in the rapidly evolving technology market.

AAC Technologies Holdings Financial Statement Overview

Summary

AAC Technologies Holdings shows strong revenue growth and improving profitability, with a stable financial structure. However, increasing debt levels and negative free cash flow 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: Negative
• Last Price: 38.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 38.72 is below the 20-day moving average (MA) of 38.74, below the 50-day MA of 38.78, and below the 200-day MA of 40.71, indicating a bearish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 55.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0303	79 Outperform	HK$15.56B	13.73	23.17%	7.66%	-0.99%	-10.43%
6869	71 Outperform	HK$75.26B	61.43	4.79%	0.54%	14.38%	-41.96%
2018	63 Neutral	$46.95B	19.67	9.39%	0.63%	30.73%	90.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0763	61 Neutral	HK$195.68B	22.16	7.73%	2.43%	5.14%	-38.37%
2038	56 Neutral	HK$14.45B	113.40	1.16%	―	3.21%	―
2342	46 Neutral	HK$7.54B	-18.75	-10.70%	0.24%	-13.99%	-32.74%

AAC Technologies Holdings Corporate Events

AAC Technologies Renews Key Operational Agreements for Continued Growth

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 transactions with Shenzhen Yuanyu, are crucial for maintaining the company’s operational premises and securing necessary materials, reflecting AAC’s strategic focus on sustaining growth in sales and production while complying with regulatory requirements.

The most recent analyst rating on (HK:2018) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies Updates Nomination Committee Terms

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 CEO roles. The Committee emphasizes diversity, professional knowledge, and industry experience in its selection process, while maintaining flexibility to adapt to changing business and regulatory needs. The updated terms also outline the Committee’s organization, including membership requirements, meeting protocols, and record-keeping procedures, aiming to enhance governance and operational efficiency.

The most recent analyst rating on (HK:2018) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies Updates Audit and Risk Committee Terms

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 company’s financial integrity, risk management, and compliance with legal requirements, while maintaining communication with auditors and financial management. The revisions aim to ensure the Committee remains adaptable to changing business and regulatory environments, enhancing its role in safeguarding the company’s financial and operational integrity.

The most recent analyst rating on (HK:2018) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies Enhances Board Duties for Stronger Governance

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 regulatory requirements, promoting a strong corporate culture, and maintaining effective risk management and internal control systems. These changes aim to strengthen the company’s governance framework, aligning with industry standards and stakeholder expectations.

The most recent analyst rating on (HK:2018) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.

AAC Technologies Updates Nomination Committee Structure

AAC Technologies Holdings Inc. announced changes in the composition of its Nomination Committee, effective from October 1, 2025. Ms. Wu Ingrid Chun Yuan has been appointed as a member, while Mr. Kwok Lam Kwong Larry has stepped down. These changes align with amendments to the Listing Rules and Corporate Governance Code, impacting the company’s governance structure.

The most recent analyst rating on (HK:2018) stock is a Hold with a HK$48.00 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 Board Composition and Committee Roles

AAC Technologies Holdings Inc. has announced the composition of its board of directors, including executive, non-executive, and independent non-executive directors. The announcement also details the membership of various board committees, such as the Audit and Risk Committee, Remuneration Committee, Nomination Committee, and Sustainability Committee. This update provides stakeholders with clarity on the governance structure and leadership roles within the company, which may influence its strategic direction and operational decisions.

The most recent analyst rating on (HK:2018) stock is a Hold with a HK$48.00 price target. To see the full list of analyst forecasts on AAC Technologies Holdings stock, see the HK:2018 Stock Forecast page.