[ET Net News Agency, 7 December 2018] Citi Research lowered its target price for AAC
Technologies Holdings (02018) to HK$62 from HK$67 and maintained its "buy" rating.
The research house perceives the recent incidents in the smartphone supply chain could
hurt investment momentum in addition to light smartphone demand could trigger a sell-off.
Citi sees higher risks from revenue exposure to Huawei and potential downside to
consensus earnings in the near term after Largan's below expectation November sales.
It projected AAC has 12-15% revenue exposure to Huawei on smartphone components. In the
worst case scenario, AAC could lose up to 15% of revenue and more profit if Huawei is
facing sanctions like ZTE's (00763) case. (KL)