Company Coverage
AAC Technologies (2018 HK): 1H26: Earnings Miss On Weak Smartphone Shipments, But Expanding Guidance And Emerging Segments Support Outlook
BUY (Upgraded)
Current price:
Target price:
Upside:
Previous TP :
HK$39.12
HK$47.80
+22.2%
HK$45.00
Analyst
Analyst
Highlights
- 1H26 revenue and net profit missed expectations on weak smartphone shipment volumes and high opex.
- Emerging growth drivers set to deliver in the near term as non-smartphone diversification gains traction.
- Upgrade to BUY with a higher target price of HK$47.80

Analysis
- Top- and bottom line growth missed consensus expectations. Revenue rose 8.9% yoy but fell 21.6% hoh to Rmb14.5b, missing consensus estimates by 5.6% due to weaker smartphone shipment volumes. Supported by premiumisation and an expanding share of higher-margin non-smartphone related revenue, gross margin expanded 1.7ppt yoy but compressed 0.7ppt hoh to 22.4%, slightly beating consensus estimates. Net profit grew by 2.9% yoy but dropped 44.9% hoh to Rmb901.3m, missing consensus estimates by 8.9% as R&D and selling costs drove operating expenses higher than expected.

Highlights
- 1H26 revenue and net profit missed expectations on weak smartphone shipment volumes and high opex.
- Emerging growth drivers set to deliver in the near term as non-smartphone diversification gains traction.
- Upgrade to BUY with a higher target price of HK$47.80

Analysis
- Top- and bottom line growth missed consensus expectations. Revenue rose 8.9% yoy but fell 21.6% hoh to Rmb14.5b, missing consensus estimates by 5.6% due to weaker smartphone shipment volumes. Supported by premiumisation and an expanding share of higher-margin non-smartphone related revenue, gross margin expanded 1.7ppt yoy but compressed 0.7ppt hoh to 22.4%, slightly beating consensus estimates. Net profit grew by 2.9% yoy but dropped 44.9% hoh to Rmb901.3m, missing consensus estimates by 8.9% as R&D and selling costs drove operating expenses higher than expected.

BUY (Upgraded)
Current price:
Target price:
Upside:
Previous TP :
HK$39.12
HK$47.80
+22.2%
HK$45.00
Analyst
Analyst
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