[ET Net News Agency, 20 July 2020] Morgan Stanley lifted its target price for AAC
Technologies (02018) to HK$60 from HK$40 and maintained its "equal-weight" rating.
The research house estimated 2Q revenue at Rmb3.9bn, up 1%, with GPM remaining
relatively stable at 25.8% and net profit rising 9% to Rmb370mn. Morgan is still concerned
about potential haptics share loss in 2H to Luxshare, though it thinks acoustic business
should mark a tough in 2020. As for lens business, Morgan is less positive than the Street
on ASP improvement.
Morgan increased its 2021 earnings estimates by 14% mainly to reflect higher lens GPM
(gross profit margin). (KL)