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AAC Technologies Holdings
(2018)
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Rating:68Neutral
Price Target:
HK$42.00
▲(2.04% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by improved financial performance, led by strong 2025 revenue growth, higher margins, and materially stronger operating and free cash flow. The main constraint is mixed technical positioning, with the stock below key medium/long-term moving averages and a negative MACD, while valuation is reasonable but supported by a low dividend yield.
Positive Factors
Revenue recovery
The strong 2025 revenue rebound indicates renewed demand and improved traction across AAC’s component businesses. If sustained, higher volumes can improve manufacturing absorption, support customer relationships, and provide a stronger base for earnings growth over the next several quarters.
Negative Factors
Margins below prior peaks
Although profitability recovered, margins have not consistently returned to earlier peak levels, indicating that pricing pressure or cost headwinds may still constrain earnings conversion. Persistent margin dilution could limit the benefit of revenue growth and reduce internal funding available for expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
The strong 2025 revenue rebound indicates renewed demand and improved traction across AAC’s component businesses. If sustained, higher volumes can improve manufacturing absorption, support customer relationships, and provide a stronger base for earnings growth over the next several quarters.
Read all positive factors
AAC Technologies Holdings (2018) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$44.18B
Dividend Yield0.92%
Average Volume (3M)3.45M
Price to Earnings (P/E)14.6
Beta (1Y)1.07
Revenue Growth15.86%
EPS Growth24.46%
CountryHK
Employees42,086
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.20
Shares Outstanding1,198,500,000
10 Day Avg. Volume3,690,583
30 Day Avg. Volume3,453,664
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$53.02Price Target Upside28.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)2.31
Revenue Forecast (FY)HK$35.29B
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 primarily makes money by selling hardware components and modules to electronics OEMs (notably smartphone and other consumer-device manufacturers) under B2B supply contracts. Its revenue is mainly generated from: (1) Acoustic products: sales of...
AAC Technologies Holdings Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 25, 2027
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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.80B | 31.82B | 27.33B | 20.42B | 20.63B | 17.67B |
| Gross Profit | 7.29B | 7.02B | 6.04B | 3.45B | 3.78B | 4.36B |
| EBITDA | 5.73B | 5.63B | 5.23B | 4.18B | 4.25B | 4.19B |
| Net Income | 2.53B | 2.51B | 1.80B | 740.37M | 821.30M | 1.32B |
Balance Sheet | ||||||
| Total Assets | 47.38B | 49.00B | 46.70B | 38.91B | 40.34B | 42.02B |
| Cash, Cash Equivalents and Short-Term Investments | 7.09B | 8.63B | 7.54B | 6.83B | 7.15B | 6.05B |
| Total Debt | 10.36B | 10.83B | 10.46B | 9.58B | 10.42B | 10.50B |
| Total Liabilities | 22.26B | 23.58B | 23.58B | 16.54B | 18.15B | 19.52B |
| Stockholders Equity | 24.09B | 24.37B | 22.75B | 21.88B | 21.66B | 21.81B |
Cash Flow | ||||||
| Free Cash Flow | 3.27B | 4.50B | 2.93B | 3.09B | 2.45B | -1.17B |
| Operating Cash Flow | 6.00B | 7.18B | 5.20B | 4.63B | 4.37B | 2.18B |
| Investing Cash Flow | -6.71B | -3.95B | -3.49B | -1.51B | -2.35B | -4.25B |
| Financing Cash Flow | -1.37B | -2.11B | -1.02B | -3.17B | -1.44B | 632.55M |
AAC Technologies Holdings Technical Analysis
Neutral
41.16
Price Trends
39.58
Negative
40.74
Negative
39.15
Negative
Market Momentum
-1.02
Negative
55.07
Neutral
55.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2018, the sentiment is Neutral. The current price of 41.16 is above the 20-day moving average (MA) of 37.20, above the 50-day MA of 39.58, and above the 200-day MA of 39.15, indicating a neutral trend. The MACD of -1.02 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$44.18B | 14.61 | 10.42% | 0.92% | 15.86% | 24.46% | |
65 Neutral | HK$13.04B | 12.37 | 21.16% | 8.06% | -6.75% | -14.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | HK$2.84B | 101.11 | 0.86% | 0.29% | 4.27% | ― | |
55 Neutral | HK$1.40B | 31.55 | 14.03% | 1.27% | 4.77% | 19.94% | |
53 Neutral | HK$635.13M | -19.68 | -2.26% | 13.33% | -16.00% | -811.76% | |
49 Neutral | HK$9.57B | 23.07 | 3.67% | 2.10% | 17.28% | 223.90% |
* Technology Sector Average
HK:2018
AAC Technologies Holdings
37.86
-1.78
-4.48%
HK:2342
Comba Telecom Systems Holdings
0.91
-2.20
-70.72%
HK:2038
FIH Mobile
12.87
-6.13
-32.27%
HK:2000
SIM Technology Group
0.31
-0.07
-17.57%
HK:0303
VTech Holdings
51.45
-8.70
-14.46%
HK:1473
Pangaea Connectivity Technology Limited
1.18
0.76
178.30%
AAC Technologies Holdings Corporate Events
AAC Technologies Launches HK$108 Million Share Grant to Key Staff
Oct 23, 2026
AAC Technologies Holdings has granted 3,044,000 awarded shares at nil consideration to 297 selected employees under its 2023 Share Award Scheme, representing about 0.25% of its total issued share capital. The move is aimed at attracting and retain...
AAC Technologies Posts Record Interim Revenue on Acoustics and AI-Driven Hardware Demand
Aug 20, 2026
AAC Technologies Holdings Inc., a Hong Kong-listed supplier of acoustics, electromagnetic drives and other electronic components to premium smartphone and edge-device makers, also offers automotive acoustics and heat dissipation solutions that sup...
AAC Technologies Sets August Board Meeting to Approve Interim Results and Consider Dividend
Aug 10, 2026
AAC Technologies Holdings Inc. has scheduled a board meeting for 20 August 2026 to approve the unaudited interim results for the six months ended 30 June 2026 and to consider whether to recommend an interim dividend. The announcement signals an up...
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.