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AAC Technologies Holdings Inc 02018

Morningstar Rating
HKD 24.65 +0.05 (0.20%)
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Company Report

Upside for AAC From Generative AI Upgrades to Smartphone Speakers and Microphones

Over the past decade, AAC has benefited from the rise of Apple, which accounts for around half of the firm’s sales, by supplying acoustics and haptics components to the phonemaker and its laptop casing, through the Toyo Precision acquisition. However, AAC has had to endure a slowdown in the adoption of the new speaker and touch feedback technologies by Apple and intensifying competition within Apple’s supply chain. As a result, its return on invested capital declined to negative 1% in 2023 from 35.8% in 2013.

Price vs Fair Value

02018 is trading at a 893% premium.
Price
HKD 24.60
Fair Value
HKD 58.00
Uncertainty
High
1-Star Price
HKD 17.56
5-Star Price
HKD 74.60
Economic Moat
Rxrg
Capital Allocation
Lrphkkcqj

Bulls Say, Bears Say

Bulls

Adoption of new speaker technology by smartphone manufacturers would benefit acoustic market leader AAC, whose strength lies in the design of miniature acoustic components.

Bears

Lack of upgrade in acoustics and haptics technology by smartphone makers could lead to a drop in average selling price and pressure the firm’s top and bottom lines.

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Trading Information

Previous Close Price
HKD 24.50
Day Range
HKD 23.1524.70
52-Week Range
HKD 12.8628.55
Bid/Ask
HKD 24.60 / HKD 24.65
Market Cap
HKD 29.54 Bil
Volume/Avg
4.4 Mil / 5.6 Mil

Key Statistics

Price/Earnings (Normalized)
45.79
Price/Sales
1.30
Dividend Yield (Trailing)
0.49%
Dividend Yield (Forward)
0.41%
Total Yield
1.82%

Company Profile

AAC Technologies is one of the world’s largest manufacturers of miniature acoustic components, such as speakers and receivers, primarily for smartphones, which account for under half of its revenue. Founded in 1993, the company has since expanded into the production of other handset components, such as electromagnetic drives (haptics), precision mechanical (metal casing), lenses and camera modules, and MEMS microphones. AAC is headquartered in Shenzhen, China, and runs factories in China, Vietnam, Czechia, and Malaysia. It employed 29,992 people as at Dec. 31, 2023.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Core
Total Number of Employees
29,922

Competitors

Valuation

Metric
02018
002475
02382
Price/Earnings (Normalized)
45.7920.2335.32
Price/Book Value
1.243.961.83
Price/Sales
1.300.971.32
Price/Cash Flow
8.669.7714.54
Price/Earnings
02018
002475
02382

Financial Strength

Metric
02018
002475
02382
Quick Ratio
1.300.941.39
Current Ratio
1.631.391.65
Interest Coverage
2.5710.032.74
Quick Ratio
02018
002475
02382

Profitability

Metric
02018
002475
02382
Return on Assets (Normalized)
1.89%5.08%
Return on Equity (Normalized)
3.46%10.03%
Return on Invested Capital (Normalized)
2.72%7.84%
Return on Assets
02018
002475
02382
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