AAC Technologies 2018

[winston]

not vested

AAC Technologies: Apple Watch Glitch Can Be Solved, Bear Jefferies Ups To Hold By Shuli Ren

Shares of AAC Technologies (2018.Hong Kong) jumped 6.4% in Hong Kong today after Jefferies, a bear, upgraded this stock to Hold.

AAC was sold off last Wednesday after The Wall Street Journal reported that its [b]components were defective, which caused delays in the delivery of Apple Watch. [/b]Apple (AAPL) reportedly has dropped AAC as a supplier.

In Jefferies analyst Ken Hui and team’s view, this glitch can be fixed. But the AAC bear said getting the Apple business back will take some time:

We believe the reliability problem with the vibrators supplied by AAC can be solved. However, even after issue is fixed, AAC will see orders flow back only slowly.

First, we believe Apple will perform rigorous testing on the vibrators produced by AAC, which will take time.

Second, since Apple has already asked Nidec to double capacity to fill the shortfall, it will unlikely shift meaningful orders back to AAC without an expansion in total Watch volume.

In longer term, consistent with guidance by Nidec. AAC can hardly reclaim to be the majority vibrator supplier for Apple Watch and new iPhones, although we believe it prices 10%+ below Nidec.

In the long-term, AAC’s business model is challenged, because its gross margin is abnormally high and it relies too much on Apple:

First, we believe the Apple Watch issue is partly due to ex-COO departure, for which the market has been underestimating negative impact on production.

Second, as AAC is losing acoustics technology leadership, the strategy of offering platform solutions does not work for all customers, because in practice AAC is effectively trying to take away the job from acoustics engineers at customers, thus facing big obstacles.

Third, management insistence on earning 40%+ overall GM will continue to hinder penetrations into new products.

Fourth, with Apple accounting for close to 70% of rev in 4Q14, customer concentration risk has gotten higher.

Jefferies has a price target of 38 Hong Kong dollars, implying 12 times their 2015 estimate. AAC Technologies is trading at HK$42.65 today.

Source: Barron's Asia

[winston]

not vested

Daiwa maintains AAC TECH(02018.HK) at Buy with target cut to $53

AAC TECH(02018.HK) -1.200 (-2.752%) Short selling $36.66M; Ratio 13.955% 's share price saw a cumulative decline of 25% over the past two weeks, possibly derived from the market concerns in relation to its haptics business, USB stated in a report.

The research house trimmed AAC TECH's EPS forecast by 7.7% and 9.2% for this year and next, to factor in lower-than-expected 1Q revenue and lower haptics orders.

Based on a P/E of 16x (down from 17x), the target price was decreased to $53 from 60, yet the rating was reiterated at Buy.

Despite lower profit forecast, the company's 2015-16 profit growth reached 25% and 20%, with attractive risk return.

Source; AAStocks Financial News

[winston]

not vested

<Result Ann>AAC TECH (02018.HK) net profit up 24.48% in 1Q

AAC TECH (02018.HK) announced the first quarter results ended 31 March 2015.

Turnover rose 24.31% from a year ago to RMB2.305 billion.

Net profit advanced 24.48% to RMB606 million, with EPS of 49.36 fen.


Source: AAStocks Financial News

[winston]

<Research Report>Macquarie maintains AAC TECH(02018.HK) at Outperform with target cut to $61.8

Macquarie, in its report, stated that the first quarter results of AAC TECH(02018.HK) are in line with the recent estimates.

Its share price tumbled 18% in a month and that was mainly attributable to the worries on losing market shares. However, the management announced to raise its capital expenditure and maintained the full-year non-acoustic sales guidance.

Furthermore, the sequential margin recovery should enhance the market?s confidence on AAC TECH?s position in major products. The broker maintained the rating at Outperform.

Nevertheless, the broker lowered EPS forecast in 2015 and 2016 by 6% to 9% to reflect the lower revenue from the acoustic business in the first quarter.

The target price was lowered from $68.2 to $61.8. Investors can find buying opportunities from the recent correction.

Source: AAStocks Financial News

[winston]

not vested

May 12, 2015

<Research Report>M Stanley maintains AAC TECH(02018.HK) at Overweight with target lifted to $52

Morgan Stanley, in a report, stated that AAC TECH(02018.HK) 1Q results and 2Q guidance suggest that the market concerns of worsening price of acoustic products are overstated.

In consideration of the bottom out of acoustic margin, together with attractive 15x and 12x FY15-16 P/E, AAC TECH's rating was maintained at Overweight.

The target price was increased from $50 to $52.

Source: AAStocks Financial News

[winston]

vested

<Research Report>BofA Merrill Lynch: AAC TECH (02018.HK) Kept Neutral on Mixed Outlook

Bank of America Merrill Lynch noted in a report that investors' focus will be place on AAC TECH (02018.HK)'s long-term business strategy and prospect, and will watch the potential upside or downside factors of the company's speaker-box and haptics in 2H2015 and 2016.

The research house retained the Neutral rating on the stock with a target price of $48 given the mixed outlook.

Source: AAStocks Financial News

[winston]

not vested

<Result Ann>AAC TECH (02018.HK) Half Year Net Profit Up 27.1%; Div. HK25 Cents

AAC TECH (02018.HK) announced the results for the six months ended 30 June 2015.

Total revenue amounted to RMB4.701 billion, up 26.7% from a year ago.

Net profit rose 27.1% yearly to RMB1.246 billion, with EPS of 101.43 fen.

Interim dividend was maintained at HK25 cents.

Source: AAStocks Financial News

[winston]

not vested

<Result Ann>AAC TECH (02018.HK) Half-Year Net Profit Up 27.1%; Div. HK25 Cents (Correct)

AAC TECH (02018.HK) announced the results for the six months ended 30 June 2015.

Total revenue amounted to RMB4.707 billion, up 26.7% from a year ago.

Net profit rose 27.1% yearly to RMB1.246 billion, with EPS of 101.43 fen.

Interim dividend was maintained at HK25 cents.

(Correct: 2015-08-24 12:20:48 AAC TECH (02018.HK) Half-Year Net Profit Up 27.1%; Div. HK25 Cents)

Source: AAStocks Financial News

[winston]

AAC Technologies: Don’t Fight Apple; Merrill, UBS Caught In Short

By Shuli Ren

Android phones would start adopting Apple’s haptics technology too.

Apple, after all, is the trend-setter in the smartphone industry

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... -in-short/

[winston]

not vested

Jan 4, 2016

<Research Report>M Stanley Keeps AAC TECH (02018.HK) at Overweight with Target Lifted to $65

Morgan Stanley revised up AAC TECH (02018.HK)'s 2016-2017 EPS forecast by 3.6% and 5%, due to higher ASP assumptions for RF mechanical solutions and speakerboxes.

The new estimates implied earnings growth of 26%/ 22% YoY. Correspondingly, the target price was raised to $65 from $62 and the rating was maintained at Overweight.

The research house believed that the market has overly concerned about iPhone 6s sell-through risk, but is overlooking upside potential from dollar content increase across almost all major products.

Source: AAStocks Financial News