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<Research>BOCI Chops AAC TECH (02018.HK) TP to $47.2 as M&A/ Non-smartphone Diversification Biz Offset Sector Pressure
Recommend 4 Positive 3 Negative 3 |
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AAC TECH (02018.HK) performed well in FY2025, with its gross profit margin rebounding from 20.7% in 1H25 to 23% in 2H25, mainly due to operational leverage and contributions from high-margin projects, according to BOCI's research report. Despite the memory price hike crisis, management believed that AAC TECH will perform strongly in 2026, with revenue growth potentially accelerating from the 2025 base and continued improvement in gross profit margin, thanks to its diversified layout in AI (VC cooling/CDU) and auto electronics (car audio system), the broker noted. BOCI also believed that the market will react positively. BOCI slightly lowered its 2026/ 2027 EPS estimations for the Group by 6%/ 7% each to reflect the impact of industry pressure on the Android smartphone market this year, and chopped its target price from $54 to $47.2 (based on an 18x PE ratio for 2026), with rating kept at Buy. AASTOCKS Financial News Website: www.aastocks.com |
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