[ET Net News Agency, 16 October 2018] Citi Research lowered its target price for AAC
Technologies Holdings (02018) to HK$78 from HK$110 to reflect the weakening earnings, and
maintained its "buy" rating.
Following our smartphone demand cut, the research house reduced its 2018/19 EPS
forecasts by 15%/21%. Citi said the macro uncertainty, sluggish China smartphone shipments
and competition risk will remain headwinds but it believes this year will be a trough and
AAC will resume its earnings growth in 2019 driven by spec migration from Android
smartphones.
Citi believes the upgrade trend is an opportunity for AAC in 2019 on higher-end
smartphones, i.e., SLS acoustics, dual-haptics and WLG for 3D sensing. Foldable smartphone
is intangible in 2019 but it is positive for AAC thanks to potential dual-haptics
adoption. The pop-up camera design from Vivo is also favorable for AAC's stepping motor.
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02018 AAC TECH
Nominal 
25.600 +1.050 (+4.277%) Others
16/10/2018 15:51
[I-bank focus]Citi lowers AAC Technologies (02018) to HK$78
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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