AAC Technologies 2018

[winston]

not vested

This Apple Supplier Has Returned 73% This Year

By Shuli Ren

AAC Technologies (2018.Hong Kong), which manufactures metal casing and haptics for Apple (AAPL), just keeps on giving.

AAC soared 6.7% this morning to 87.45 Hong Kong dollars after reporting strong second-quarter earnings and providing sunny forward guidance.

In the second quarter, operating profit at AAC rose 23% from a year ago to 825 million yuan, while its sales jumped 26% to 3 billion yuan.

Metal casing was a key growth driver, with sales soaring 290% year-on-year, or 800% quarter-on-quarter, thanks to strong orders from Chinese clients from Xiaomi and Le phone.

At the end of the day, Apple is the trend setter. If the iPhone adopts metal casing, Chinese manufacturers will follow suit with their high-end phones to differentiate among themselves. AAC, as a key supplier of Apple, will therefore get new businesses too.

AAC gives a rosy outlook too, saying “as the Company enter the second half of the year, its order book is solid and the pipeline of ne wRF Mechanical business remains strong.”

And there is more upside for AAC, because it is not that expensive yet.

Deutsche Bank this morning raised its target from HK$70 to HK$90, saying it expects AAC to report 23% sales and earnings per share growth every year all the way to 2018! Analyst Birdy Lu wrote:

We revise up our 2016-18 EPS forecasts by 4%-16% to reflect metal casing share gains and acoustic ASP upside. We raise our TP from HKD70 (16x PER, mid-cycle average) to HKD90 (18x PER, up-cycle average).

We expect a rerating to take place, given an improving growth outlook and OPM/ROE expansion in 2016-18. Also, the stock’s recent inclusion as a Hang Seng index 50 component is a plus for the valuation.

Daiwa Securities’s Kylie Huang raised her price target all the way to HK$94.50:

We raise our 2016-18E earnings by 2-6% to factor in our higher revenue assumptions. We reaffirm our Buy (1) and raise our 12- month TP to HKD94.5 (from HKD78), now based on 20x PER (from 18x PER), at the high end of the stock’s past-3-year trading range of 10-20x, applied to our 1-year-forward EPS.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... this-year/

[winston]

not vested

AAC Technologies (2018) gained 5.3 percent to HK$86.40, an all-time high.

Second-quarter profit rose 15 percent to 736 million yuan.

The stock has surged 95 percent in one year, and 465 percent over the last five years -- thanks to the new iPhone launch and surge in demand for its acoustic aspect of speech, RF mechanical and metal casing products.

Future growth will come from penetrating 3-D glass. A few brokers have given the stock a new target price of between HK$91 and HK$96. It's still worth buying on dips.

Source: Dr Check, The Standard

[winston]

Oct 25, 2016

not vested

AAC TECH Hits Over 2-mth Low on Bearish View from M Stanley

Earlier, Morgan Stanley, in its report, downgraded AAC TECH (02018.HK) and cut its target price.

After plunging over 3% yesterday, AAC TECH once hit the trough of $75.15, hitting over 2-month low, and it last stood at $75.45, plunging 2.6% on a volume of 1.9 million shares.

Morgan Stanley said due to more risks in 4 main Chinese OEMs, weaker sectoral demand in China next year and the year-to-date rally, the broker slashed the target price by 18% to $78 with rating downgraded from Overweight to Equalweight.

Credit Suisse also lowered the earning forecast for the coming 3 years, as well as trimmed the target price by over 3%, but kept the rating Outperform.

Source: AAStocks Financial News

[winston]

Sep 5, 2016

not vested

<Research Report>Daiwa Rates AAC TECH at Buy with Target Lifted to $102

Daiwa, in its report, quoted AAC TECH (02018.HK)'s management that RF/mechanical will be the main revenue growth drivers for this and next year as customers have already showed high interests in its integrated solutions.

Additionally, the research house also saw AAC TECH to receive orders from OPPO, Xiaomi and LENOVO GROUP (00992.HK) in 2H16.

The research house said LeEco's revenue contribution to AAC TECH for 2016-17 will rise to 18-21%.

The research house raised the profit forecast for 2017-18 by 3-4% with target lifted to $102 from $94.5 and rating Buy.

Source: AAStocks Financial News
Web Site: www.aastocks.com

[winston]

Aug 29, 2016

not vested

<Post Result>Brokers' Latest Ratings & TPs on AAC TECH (02018.HK) (Table)

Last Friday afternoon, AAC TECH (02018.HK) announced the interim net profit rose 8.8% yearly to RMB1.355 billion.

The EPS equaled 110.32 fen; an interim dividend of HK$0.3 was declared, up 20% yearly.

For the second quarter ended 30 June 2016, net profit rose 15% yearly to RMB736 million;

EPS was RMB0.6; the revenue rose 26% yearly to RMB3.019 billion.

AAC TECH last stood at $87, 6.1% higher than $82 (26 August's stock price at midday close).


15 brokers listed their ratings and target prices:

Brokers / Ratings / Target Prices (HK $)
BNP Paribas / Buy / 84-> 96
Morgan Stanley / Overweight / 88-> 95
Nomura / Buy / 93-> 95
Daiwa / Buy / 78-> 94.5
Citigroup / Buy / 90-> 94
CIMB / Overweight / 74-> 91
UOB-Kay Hian / Hold-> Buy / 63.2-> 91
CCB International / Outperform / 73-> 90.2
Deutsche Bank / Buy / 70-> 90
UBS / Neutral / 79-> 86
Macquarie / Underperform-> Neutral / 45-> 82
CICC / Hold / 56.6-> 80.36
JPMorgan / Neutral / 70-> 76
BOCOM International / Neutral / 56-> 68
Goldman Sachs / Neutral / Under review

Source: AAStocks Financial News

[winston]

not vested

<Blue Chip Results>AAC TECH 1-3Q Net Profit Up 17.12% YoY to RMB2.455B

AAC TECH (02018.HK) announced the result for the first three quarters ended 30 September 2016.

During the period, net profit rose 17.12% yearly to RMB2.455 billion; EPS amounted to 199.92 fen.

For the third quarter alone, revenue rose 32.13% yearly to RMB4.207 billion; net profit rose 29.26% yearly to RMB1.1 billion; EPS amounted to RMB0.9; gross profit margin rose 0.2 ppts yearly to 41.8%.

Source: AAStocks Financial News

[winston]

not vested

Another share with sound earnings is AAC Tech (2018).

In the first three quarters, earning rose 17 percent from a year earlier.

The stock fell to HK$68 level from an all-time high of HK$90.65.

A further dip near the HK$63 level - its 250-day moving average - makes the stock attractive to accumulate.

Source: Dr Check, The Standard

[winston]

not vested

Multi-platforms leading the earnings growth

3Q16 net profit beat our and Bloomberg consensus forecasts by 6% due to stronger-than-expected topline growth.

9M16 earnings at 63% of our FY16F, slightly ahead we expect a strong 4Q16. We lift our FY16-18F EPS by 1-4% to reflect acoustic upgrade trend in Android camp.

Growth drivers include continuous acoustic upgrades, new customer gains for RF mechanical solution, function enhancement in haptics and contribution from optics.

Antenna + metal casings will be the key driver when 3D glass cover shipment starts.

Maintain Add with higher target price of HK$92.18, still based on 20x P/E in FY17F (its upcycle valuation).

Maintain Add with higher target price of HK$92.18

We believe AAC will benefit from the sound quality upgrade within the Android camp and new customer wins for its RF mechanical solutions.

We raise our FY16F-18F EPS by 1-4% to factor in higher revenue assumptions for dynamic components.

This lifts our TP, still based on 20x FY17F P/E (its upcycle valuation).

Re-rating catalysts include wide adoption of its speaker boxes by Chinese brands and further haptics upgrade in nextgeneration
iPhones.

Key risk to our call is weaker-than-expected iPhone sales.

Source: CIMB

https://brokingrfs.cimb.com/1dpIVJC1Buu ... E0WtA2.pdf

[winston]

not vested

<Research Report>Nomura Trims AAC TECH (02018.HK) Target to $82; Rated Buy

Nomura, in its report, said the 3Q16 result of AAC TECH (02018.HK) beat consensus, driven by strong acoustic/haptics demand, but missed the broker's forecast due to impact from LeEco.

Therefore, the broker lowered its earnings forecast by 8-9% for 2016-17, as LeEco?s financial problem could drag down AAC's growth outlook in RF mechanics and optics, in which LeEco is one of the major customers.

However, AAC's share price has dived over 20% since early September, and the LeEco issue has largely been priced in.

The broker kept the rating Buy with target price cut from $95 to $82, based on 18x 2017 EPS (estimate).

Source: AAStocks Financial News

[winston]

not vested

Nov 15, 2016

<Research Report>C Suisse Cuts AAC TECH (02018.HK) Target to $86.9; Rated Outperform

AAC TECH (02018.HK) 3Q revenue and net profit rose 32% and 29% yearly, Credit Suisse said in its report.

Although they were both higher than the street consensus, they were 5% and 9% below the research house's expectations.

Credit Suisse predicted that AAC TECH was mainly dragged by the lower revenue and gross margin of acoustic touch motors.

The research house revised AAC TECH 2016-2018 EPS forecast down 5%, with the target price cut from $91.8 to $86.9 and rating maintained at Outperform.

Source: AAStocks Financial News