[ET Net News Agency, 27 May 2019] Credit Suisse attended AAC's Technology (02018)
seminar in Shenzhen on Friday.
The research house said key takeaways are (1) AAC will continue to expand MEMS chip
capacity with shorter lead time; (2) AAC has strong capability to design stepper motor
solutions based on clients' specifications; (3) AAC demonstrated its 3x optical zoom with
hybrid-lens dual-cam module and the world's smallest automotive DMS camera; and (4) AAC
can offer miniature speakers, automotive cameras, and haptic solutions for auto
applications.
For 5G smartphones, AAC can provide total solutions, including integrating IC substrate
AiP antenna, connector, LCP transmission line, 3D glass and mechanical precision for both
mmWave and sub-6GHz bands, but sees the mass market more likely in 2H 2020/2021. Near
term, Credit Suisse believes 2Q results, the trade dispute, and Huawei ban issues remain
overhangs for the stock.
Credit Suisse reiterated its "underperform" rating on concerns over gross margin
deterioration, with a target price of HK$37.8. (KL)