AAC Technologies 2018

Re: AAC Technologies 2018

Postby winston » Wed Jun 07, 2017 7:54 am

not vested

Hacktivist group Anonymous weighs in on Gotham’s short selling note on AAC

“The entirety of Gotham’s short thesis alleging undisclosed related parties appears not only false, but it doesn’t even make sense from a valuation perspective,” according to a 50-page report by Anonymous Analytics.


Anonymous Analytics labelled AAC as a strong buy with target price of HK$111.


Source: SCMP

http://www.scmp.com/business/companies/ ... g-note-aac
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Wed Jun 07, 2017 8:22 am

not vested

Short-sellers in tussle

by Dominique Nguy

Shortseller Anonymous Analytics recommended a "strong buy" rating for Apple supplier AAC Technologies (2018), which is under attack from another shortseller, Gotham City Research.

In May, Gotham issued two reports and questioned AAC's accounting, saying the company used "over 20 undisclosed related parties and dubious accounting to overstate profits since 2014."

However, in a twist to the drama, Anonymous Analytics yesterday said in a report - labelled "Hong Kong deserves a better hero" - that the Gotham report was grossly misleading and contained "a seemingly willful ignorance of what constitutes a disclosable related party under Hong Kong listing rules."

Anonymous Analytics also said Gotham's "short thesis alleging undisclosed related parties appears not only false, but it doesn't even make sense from a valuation perspective."

It put AAC's target price at HK$111.

Meanwhile, AAC Technologies denied all allegations made by Gotham in a clarification yesterday and said the company might repurchase shares of the company to protect interests of its shareholders.

It said trading of its shares will resume today. Shares of AAC last traded at HK$81.43.

"The clarification will restore truth to everything," said AAC chief executive Benjamin Pan Zhengmin yesterday.

AAC said in the clarification that Gotham's allegations are "groundless, false or misleading" and that it "created confusions of alleged related parties" to serve its own purpose.

It pointed out that Gotham has made use of entities with shareholders sharing "the same surname as the chief executive" and "the same name as the chief executive's sister."

It also said Gotham has a "complete lack of professional understanding of the operating business model of the company and the industry."

Richard Mok Joe-kuen, AAC executive director, said the company has no contact with Anonymous Analytics.

Pan added that he too was surprised by Anonymous Analytics' issuance of the report.

Mok said the company will conduct different measures and consult opinions from lawyers in order to protect the interests of the company.

"The management of our company should be focusing on the fundamentals of our business, and with regards to the noises in the market, I believe it will be better to leave it for the market to make its own judgment," said Mok.

Source: The Standard

http://www.thestandard.com.hk/section-n ... ?id=183713
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Wed Jun 07, 2017 11:23 am

not vested

<Research Report>JPM: AAC TECH Share Price Overhang May Sustain; Rated Neutral with Target of $85

JPMorgan said in its report that the clarification made by AAC TECH (02018.HK) can hardly alleviate the concerns of investors as the CEO confirmed one of the transactions were related to the son of his grandmother's brother.

Although it does not fall within the definition of "Connected Person" under Listing Rules, it constitutes a family relationship, which will arouse investors' concern.

Hence, the broker believed the share price will be under pressure in short term. The rating was Neutral with target price of $85.

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Wed Jun 07, 2017 11:25 am

not vested

<Research Report>Daiwa: AAC TECH (02018.HK) Clarification Eases Market Worry; Rated Buy with Target at $115

Daiwa, in its report, said the share price of AAC TECH (02018.HK) declined by 27% in May, driven by Gotham City Research (GCR)?s short-selling report.

To address investor concerns, AAC released a comprehensive clarification and hosted an analyst meeting yesterday (6 June), denying all allegations from GCR.

Daiwa said the recent pull-back is a buying opportunity based on assumptions of solid earnings growth.

AAC remains one of the broker's top picks in the Greater China smartphone space. With attractive valuation, the broker reiterated Buy with target price of $115, equivalent to 21x P/E, slightly above the three-year average of 10x to 20x.

AAC's CEO believed fundamentals are on track and that AAC's relationships with major customers remain solid.

The broker said AAC is on schedule to ramp-up products for new iPhones in 2H17. Driven by the ASP increases from spec upgrade trends in acoustics and haptics, increasing contributions from RF/mechanical and operating-margin expansion due to improving operating efficiency, Daiwa expected AAC's earnings to grow yearly by 33% in 2017 and 22% in 2018.

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Wed Jun 07, 2017 11:48 am

not vested

<Research Report>Macquarie Maintains AAC TECH at Underperform; Recommends to Shift to Safer Stocks

Macquarie, in its report, said that AAC TECH (02018.HK) management refuted the allegations of short seller Gotham yesterday and maintained its view for business outlook. The company may also conduct share buyback.

The research house expected downtrend for shares of the company after trade resumption today. The target price was reiterated at $75, with a rating of Underperform.

The broker expected for share price volatility in the near term after trade resumption and hence recommended other stocks, including telecom stocks CHINA UNICOM (00762.HK), CHINA MOBILE (00941.HK) and ZTE (00763.HK); stocks with strong growth including SUNNY OPTICAL (02382.HK), ASM PACIFIC (00522.HK) and TONGDA GROUP (00698.HK); and stocks with appealing value such as LENOVO GROUP (00992.HK).

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Wed Jun 07, 2017 11:50 am

not vested

<Research Report>Deutsche: AAC TECH Fundamentals Remain Good; Rated Buy with Target Price $105

Deutsche Bank, in its report, said that AAC TECH (02018.HK) held a tele-conference to clarify the accusation including no earnings exaggeration, no flaws for cash flow and capex and no violation for Apple Supplier Code of Conduct.

The research house believed that the company's fundamentals remain solid with strong balance sheet.

It is anticipated that acoustic upgrade, haptic proliferating into Android clients and market share gain in metal casing could drive for growth.

The rating was maintained at Buy with a target price of $105.

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Thu Jun 08, 2017 7:11 am

vested

AAC up 14pc as Gotham goes back on attack

by Dominique Nguy

Shares of AAC Technologies (2018) rose 14 percent on the first day of trading resumption and closed at HK$92.55 yesterday following the release of clarification on Tuesday.

However, short-seller Gotham City Research launched a new attack on AAC yesterday, questioning the accuracy of its financial statement.

AAC's stock price once rose as much as 19 percent yesterday as some investment banks released reports in support of the company's clarification. Turnover of AAC yesterday reached HK$5.7 billion.

Deutsche Bank said in a report the clarification, made by AAC in an investor phone conference, was in line with the bank's earlier view that the company has not overstated its profits and that it has not violated the Apple's supplier code of conduct.

It said the fundamentals of AAC remain good and maintains a "buy" rating on the company with a target price of HK$105.

Daiwa Capital Markets said AAC remains its top priority among stocks related to mobile phones and gave it a target price of HK$115.

JPMorgan said it might be difficult for AAC to allay investors' concerns as its transactions had involved relatives of management who are not categorized as related parties in definition, but investors would remain suspicious. It said AAC shares will remain under pressure in the short term.

In a renewed attack on the Apple supplier, Gotham City said AAC has no chief financial officer and that the wife of AAC's chief executive sits on the audit committee.

It said: "AAC has not explained how its auditor is able to audit AAC's financial statements with such low audit fees, given that AAC's size would seem to require more billable hours."

Gotham City also said there are at least 30 companies listed under the name of the AAC chief executive's father, "some of which do business with AAC."

On Tuesday, another shortseller, Anonymous Analytics, recommended a "strong buy" rating for AAC.

Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Thu Jun 08, 2017 9:36 am

vested

AAC TECH (02018.HK) Buys Back 1M Shares Yesterday

AAC TECH (02018.HK) announced that the company repurchased 1 million shares on 7 June at a price of $91.3 to $92.55 per share, which involved over $91.84 million.

Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Thu Jun 08, 2017 9:38 am

vested

<Research Report>Brokers' Latest Ratings & Comments on AAC TECH (Table)

AAC TECH (02018.HK), in its clarification announcement, refuted the allegations from Gotham City Research (GCR), which were based on false website information and showed a complete lack of professional understanding.

After resumption today, AAC TECH opened up by 8% from the low level in early February.

With positive view from various brokers, it once rose to $96.7 at most; it closed at $92.55, surging 13.7%, on a spiking turnover of $5.66 billion.

Brokers' latest ratings, target prices and comments are as follows:

Brokers/ Ratings/ Target prices(HK$)/ Short comments
BOC International/ Buy/ 129/ Strong response from company alleviates market concern
BNP Paribas/ Buy/ 118/ Solid fundamentals
Daiwa/ Buy/ 115/ Clarification alleviates market concern
Nomura/ Buy/ 114/ Expects positive share price perforamce after resumption
Citigroup/ Buy/ 111/ Expects company to benefit from sector upgrade trend
Deutsche Bank/ Buy/ 105/ Fundamentals remain good
BOCOM International/ Buy/ 105/ Market will focus on fundamentals again
CIMB/ Accumulate / 101/ May start repurchasing shares
Credit Suisse/ Neutral/ 98.4/ Keeps AAC's 2017 to 2019 earnings forecast unchanged
Morgan Stanley/ Equalweight/ 98/ Market concerns about share buyback
CICC/ Hold/ 85/ Strong fundamentals
JPMorgan/ Neutral/ 85/ Expects investors' worries to remain in near term
Macquarie/ Underperform/ 75/ Asks investors to "switch out to safer pool"


Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

Re: AAC Technologies 2018

Postby winston » Thu Jun 08, 2017 9:38 am

vested

<Research Report>Brokers' Latest Ratings & Comments on AAC TECH (Table)

AAC TECH (02018.HK), in its clarification announcement, refuted the allegations from Gotham City Research (GCR), which were based on false website information and showed a complete lack of professional understanding.

After resumption today, AAC TECH opened up by 8% from the low level in early February.

With positive view from various brokers, it once rose to $96.7 at most; it closed at $92.55, surging 13.7%, on a spiking turnover of $5.66 billion.

Brokers' latest ratings, target prices and comments are as follows:

Brokers/ Ratings/ Target prices(HK$)/ Short comments
BOC International/ Buy/ 129/ Strong response from company alleviates market concern
BNP Paribas/ Buy/ 118/ Solid fundamentals
Daiwa/ Buy/ 115/ Clarification alleviates market concern
Nomura/ Buy/ 114/ Expects positive share price perforamce after resumption
Citigroup/ Buy/ 111/ Expects company to benefit from sector upgrade trend
Deutsche Bank/ Buy/ 105/ Fundamentals remain good
BOCOM International/ Buy/ 105/ Market will focus on fundamentals again
CIMB/ Accumulate / 101/ May start repurchasing shares
Credit Suisse/ Neutral/ 98.4/ Keeps AAC's 2017 to 2019 earnings forecast unchanged
Morgan Stanley/ Equalweight/ 98/ Market concerns about share buyback
CICC/ Hold/ 85/ Strong fundamentals
JPMorgan/ Neutral/ 85/ Expects investors' worries to remain in near term
Macquarie/ Underperform/ 75/ Asks investors to "switch out to safer pool"


Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 103071
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to A to B

Who is online

Users browsing this forum: No registered users and 1 guest