[ET Net News Agency, 12 November 2019] HSBC Qianhai Securities raised its target price
for AAC Technologies Holdings (02018) to HK$54.1 from HK$50.6 and maintained its "hold"
rating.
The research house said AAC's 3Q results suggest recovery on track. Management indicated
that monthly lens shipment increased in 3Q QoQ and should exceed 60m in December 2019,
versus 30m in end-2Q. Its lens production capacity will further expand to 100m in
March-April 2020, which should be a precondition to realize a 40%-50% gross margin in the
segment.
AAC is also gaining traction in optical image stabilizer (OIS) and wafer-level glass
(WLG). The company is now working with 10 OEM customers for WLG and good progress has been
achieved in the sample tests for periscope lens solutions.
HSBC raised its net profit estimates for AAC by 2%/3%/5% mainly due to higher gross
margin assumptions in acoustic, haptics and MEMS (microelectromechanical system) business.
(KL)