DBS Group Research raised its target price for AAC Technologies Holdings (02018) to HK$56 from HK$45 on recovery driven by clearer Android upgrades and maintained its "buy" rating.
The research house expects the inflection point to be in FY2020. DBS estimated revenue contribution from Android to increase from 41% in FY2018 to 57% in FY2019. Therefore, it expects Android upgrades of (1) haptics (edge haptics), and (2) acoustics (super linear structure [SLS]), to drive AAC to resume growth in FY2020.
It expects net profit to resume growth of 57% in FY2020, 7% higher than consensus. DBS noted that AAC is trading at 16x FY2020 PE versus its trading band of 14-44x.
22/10/2019 12:36
{I-bank focus}DBS raises AAC Technologies (02018) to HK$56
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