[ET Net News Agency, 24 May 2018] UBS Global Research trimmed its target price for AAC
Technologies (02018) to HK$155 from HK$185, and retained its "buy" rating.
The research house lowered its 2018-20 earnings forecasts by 16-9% to reflect a weaker
revenue/gross margin outlook. However UBS expects strong 2H earnings, driven by AAC's
higher share of advanced acoustic and back-end loaded haptic products, which should drive
margin improvement.
AAC is trading at 19x 2018 PE versus 15-25x during the past one year. UBS believes the
share price reflects market concerns about slower growth of the acoustics business due to
increasing competition, and a weaker margin in 1H. (KL)