AI Investing Insights - Official Homepage

Citi

Citi Research

initiated

$56

2025-11-19

Reason

The analyst rating for AAC TECH (02018.HK) was upgraded to "Buy" by Citi Research due to the company's agreement to acquire Dispelix Oy, an AR diffractive waveguide technology company. The report highlighted that this acquisition is expected to enhance AAC TECH's product mix and solution capabilities in the extended reality (XR) field. This strategic move aims to transition the company from primarily serving domestic AR glasses customers to capturing future global opportunities in AI and AR glasses development. Consequently, Citi Research set a target price of $56 for the stock.

Citi

Price Target

$56

2025-11-19

initiated

The analyst rating for AAC TECH (02018.HK) was upgraded to "Buy" by Citi Research due to the company's agreement to acquire Dispelix Oy, an AR diffractive waveguide technology company. The report highlighted that this acquisition is expected to enhance AAC TECH's product mix and solution capabilities in the extended reality (XR) field. This strategic move aims to transition the company from primarily serving domestic AR glasses customers to capturing future global opportunities in AI and AR glasses development. Consequently, Citi Research set a target price of $56 for the stock.

Goldman Sachs

maintain

2025-11-17

Reason

Goldman Sachs has a more optimistic view on AAC TECH (02018.HK) due to the introduction of new components, specifically vapor chambers, and a promising outlook for the iPhone. The broker raised its earnings estimations for 2025-2027 by 1%, 4%, and 6% respectively, primarily reflecting increased revenue forecasts from vapor chambers as they are adopted in more phone models and as phone specifications improve. Additionally, Goldman Sachs noted an improved product mix, better production yield, and benefits from scale production, which contribute to a positive outlook on profit margin expansion. Consequently, the target price was increased from $63.6 to $68.6, maintaining a Buy rating.

Goldman Sachs

Price Target

2025-11-17

maintain

Goldman Sachs has a more optimistic view on AAC TECH (02018.HK) due to the introduction of new components, specifically vapor chambers, and a promising outlook for the iPhone. The broker raised its earnings estimations for 2025-2027 by 1%, 4%, and 6% respectively, primarily reflecting increased revenue forecasts from vapor chambers as they are adopted in more phone models and as phone specifications improve. Additionally, Goldman Sachs noted an improved product mix, better production yield, and benefits from scale production, which contribute to a positive outlook on profit margin expansion. Consequently, the target price was increased from $63.6 to $68.6, maintaining a Buy rating.

HTSC

Buy

downgrade

2025-08-27

Reason

HTSC

Buy

Price Target

2025-08-27

downgrade

HSBC Global Research

Buy

to

Buy

downgrade

$56

2025-08-25

Reason

The analyst rating from HSBC Global Research for AAC TECH (02018.HK) is a Buy, despite cutting the target price from HKD59.9 to HKD56. The reasoning behind this rating is that while the company's recurring net profit fell short of market expectations due to lower-than-expected gross margins in the acoustics and sensor segments, its revenue growth of 18% year-over-year to RMB13.3 billion met expectations. Additionally, the optics business demonstrated strong growth with a 20% year-over-year revenue increase and improved gross margins, indicating positive momentum in that segment.

HSBC Global Research

Buy

to

Buy

Price Target

$56

2025-08-25

downgrade

The analyst rating from HSBC Global Research for AAC TECH (02018.HK) is a Buy, despite cutting the target price from HKD59.9 to HKD56. The reasoning behind this rating is that while the company's recurring net profit fell short of market expectations due to lower-than-expected gross margins in the acoustics and sensor segments, its revenue growth of 18% year-over-year to RMB13.3 billion met expectations. Additionally, the optics business demonstrated strong growth with a 20% year-over-year revenue increase and improved gross margins, indicating positive momentum in that segment.

BofAS

NULL -> Buy

upgrade

2025-08-22

Reason

BofAS

NULL -> Buy

Price Target

2025-08-22

upgrade

CMB International

Buy

trimmed

2025-08-22

Reason

CMB International

Buy

Price Target

2025-08-22

trimmed

JPMorgan

Overweight

maintain

$60 -> $65

2025-08-22

Reason

The analyst rating for AAC TECH was influenced by the company's positive outlook for the second half of 2025 (2H25), which is expected to be driven by increased production of new high-end goods and ongoing improvements in the optics business. Additionally, the revenue outlook for 2H25 exceeded market expectations due to significant growth in new businesses such as thermal management and automotive acoustics, as well as upgrades in existing product specifications. As a result, JPMorgan raised its target price for the company and maintained an Overweight rating.

JPMorgan

Overweight

Price Target

$60 -> $65

2025-08-22

maintain

The analyst rating for AAC TECH was influenced by the company's positive outlook for the second half of 2025 (2H25), which is expected to be driven by increased production of new high-end goods and ongoing improvements in the optics business. Additionally, the revenue outlook for 2H25 exceeded market expectations due to significant growth in new businesses such as thermal management and automotive acoustics, as well as upgrades in existing product specifications. As a result, JPMorgan raised its target price for the company and maintained an Overweight rating.

Goldman Sachs

Buy

maintain

$62

2025-08-22

Reason

The analyst rating for AAC TECH (02018.HK) is based on several positive factors highlighted in the Goldman Sachs report. The key reasons for maintaining a Buy rating and raising the target price from HKD62 to HKD63.6 include: 1. Improvement in Gross Profit: The optical business experienced a significant increase in gross profit during the first half of 2025. 2. Expected Recovery in Gross Margin: The blended gross margin is anticipated to recover to 23.6% in the second half of 2025, driven by several tailwinds. 3. Strong Performance in Handset Lens: The gross profit for handset lenses is expected to exceed 30%, contributing positively to overall margins. 4. Recovery in Acoustic Business: There is an expected recovery in the acoustic business gross profit due to the mass production of mid-to-high-end projects. 5. Diversification into Higher Margin Segments: The company is diversifying into automotive acoustics and cooling business, which are expected to have higher profit margins. These factors collectively support the positive outlook and rating from Goldman Sachs.

Goldman Sachs

Buy

Price Target

$62

2025-08-22

maintain

The analyst rating for AAC TECH (02018.HK) is based on several positive factors highlighted in the Goldman Sachs report. The key reasons for maintaining a Buy rating and raising the target price from HKD62 to HKD63.6 include: 1. Improvement in Gross Profit: The optical business experienced a significant increase in gross profit during the first half of 2025. 2. Expected Recovery in Gross Margin: The blended gross margin is anticipated to recover to 23.6% in the second half of 2025, driven by several tailwinds. 3. Strong Performance in Handset Lens: The gross profit for handset lenses is expected to exceed 30%, contributing positively to overall margins. 4. Recovery in Acoustic Business: There is an expected recovery in the acoustic business gross profit due to the mass production of mid-to-high-end projects. 5. Diversification into Higher Margin Segments: The company is diversifying into automotive acoustics and cooling business, which are expected to have higher profit margins. These factors collectively support the positive outlook and rating from Goldman Sachs.

BofA Securities

Neutral -> Buy

upgrade

$44 -> $57

2025-08-18

Reason

The analyst rating for AAC TECH was upgraded from Neutral to Buy by BofA Securities due to several key factors: 1. Improvement in Fundamentals: The company is experiencing better fundamentals driven by upgrades in smartphone component specifications and an improved business environment for optical products. 2. Stable Growth and Upcycle: AAC TECH is expected to achieve more stable growth and return to an upcycle, indicating a positive outlook for the company's performance. 3. Increased Earnings Forecasts: BofA raised its earnings forecasts for 2025-2027 by 4-29% to reflect stronger profit margins, suggesting confidence in the company's profitability. 4. Target Price Increase: The target price was lifted from $44 to $57, indicating a belief in the potential for significant valuation re-rating based on structural earnings growth. 5. Competitive Advantage: The strategic shift of its main competitor, SUNNY OPTICAL, towards the high-end segment is seen as providing AAC TECH with greater growth opportunities in the mid-to-high-end market. These factors collectively contributed to the upgrade in the analyst rating.

BofA Securities

Neutral -> Buy

Price Target

$44 -> $57

2025-08-18

upgrade

The analyst rating for AAC TECH was upgraded from Neutral to Buy by BofA Securities due to several key factors: 1. Improvement in Fundamentals: The company is experiencing better fundamentals driven by upgrades in smartphone component specifications and an improved business environment for optical products. 2. Stable Growth and Upcycle: AAC TECH is expected to achieve more stable growth and return to an upcycle, indicating a positive outlook for the company's performance. 3. Increased Earnings Forecasts: BofA raised its earnings forecasts for 2025-2027 by 4-29% to reflect stronger profit margins, suggesting confidence in the company's profitability. 4. Target Price Increase: The target price was lifted from $44 to $57, indicating a belief in the potential for significant valuation re-rating based on structural earnings growth. 5. Competitive Advantage: The strategic shift of its main competitor, SUNNY OPTICAL, towards the high-end segment is seen as providing AAC TECH with greater growth opportunities in the mid-to-high-end market. These factors collectively contributed to the upgrade in the analyst rating.

News

Forward PE

Forward EV/EBITDA

Forward PS

Financials