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<Research>Citi Trims AAC TECH (02018.HK) TP to $40 as Mgmt Guides for at Least 16% Rev. Growth This Yr
Recommend 4 Positive 2 Negative 5 |
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AAC TECH (02018.HK)'s 2H25 operating profit/ net profit were below expectations, but the outlook was better than initially feared, Citi Research issued a research report saying. The management expected revenue growth this year to be no less than last year's 16% increase, with gross margin expected to remain flat or grow YoY. Management also noted an increase in orders for high-end models in 1Q26, and believed that the rise in memory prices will have little impact on AAC TECH. Considering the potential weakness in smartphones, the broker lowered its 2026/ 2027 net profit forecasts for the Company by 17%/ 10% each, and introduced its 2028 net profit forecast of RMB4 billion. Citi Research also reduced its valuation basis from a projected 2026 PE ratio of 20x to 17x. Therefore, the broker trimmed its target accordingly from $56 to $40, with rating at Buy. AASTOCKS Financial News Website: www.aastocks.com |
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