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2018: Share Repurchases And Margin Pressures Will Shape A Balanced Outlook

Escalating US-China Tensions And Rising Costs Will Impair Prospects

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2018
AnalystLowTarget
Not Invested
Published 28 Jun 2025

Update shared on 12 Dec 2025

Fair value Decreased 6.07%
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AnalystLowTarget's Fair Value
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1Y
1.5%
7D
1.4%

Analysts have modestly reduced their price target on AAC Technologies Holdings to approximately $42 from about $45 per share, citing a slightly higher discount rate and lower expected profit margins that more than offset stronger projected revenue growth.

What's in the News

  • AAC Technologies Holdings has commenced a share repurchase program from October 17, 2025, following approval at its May 22, 2025 Annual General Meeting (Key Developments).
  • The company is authorized to buy back up to 117,518,750 shares, equivalent to 10% of its issued share capital as of May 22, 2025 (Key Developments).
  • The buyback is intended to enhance net asset value per share and earnings per share, with repurchases funded from profits, new share issue proceeds, or other legally available funds under Cayman Islands law (Key Developments).
  • The repurchase mandate will expire at the earlier of the next Annual General Meeting, the date on which that meeting is required to be held, or when the authority is varied or revoked in a General Meeting (Key Developments).

Valuation Changes

  • The fair value estimate has fallen modestly from HK$44.98 to HK$42.26 per share, reflecting a slightly more conservative outlook despite stronger revenue growth assumptions.
  • The discount rate has risen slightly from 8.91% to 9.53%, increasing the required return and putting downward pressure on the valuation.
  • Revenue growth has edged higher from 9.92% to 10.49%, indicating a marginally more optimistic view on top line expansion.
  • The net profit margin has declined slightly from 8.02% to 7.85%, suggesting a modest deterioration in expected profitability.
  • The future P/E multiple has been reduced significantly from 21.53x to 17.99x, implying a lower valuation benchmark for AAC Technologies Holdings relative to its forecast earnings.

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