DB:A2XN

Stock Analysis Report

AAC Technologies Holdings

Executive Summary

AAC Technologies Holdings Inc., an investment holding company, provides miniaturized technology components to the consumer electronics industry worldwide.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential and pays a dividend.


Similar Companies

Share Price & News

How has AAC Technologies Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A2XN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.5%

A2XN

-8.8%

DE Electronic

-9.1%

DE Market


1 Year Return

10.1%

A2XN

-5.2%

DE Electronic

2.9%

DE Market

Return vs Industry: A2XN exceeded the German Electronic industry which returned -5.2% over the past year.

Return vs Market: A2XN exceeded the German Market which returned 2.9% over the past year.


Shareholder returns

A2XNIndustryMarket
7 Day-13.5%-8.8%-9.1%
30 Day-17.6%2.0%-7.2%
90 Day-9.0%-0.5%-6.5%
1 Year14.1%10.1%-3.2%-5.2%6.1%2.9%
3 Year-38.3%-42.5%31.2%27.0%3.5%-5.6%
5 Year4.0%-6.8%94.3%80.2%8.0%-6.8%

Price Volatility Vs. Market

How volatile is AAC Technologies Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AAC Technologies Holdings undervalued compared to its fair value and its price relative to the market?

22.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: A2XN (€6.29) is trading above our estimate of fair value (€5.87)

Significantly Below Fair Value: A2XN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: A2XN is good value based on its PE Ratio (23.7x) compared to the Electronic industry average (24.9x).

PE vs Market: A2XN is poor value based on its PE Ratio (23.7x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: A2XN is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: A2XN is overvalued based on its PB Ratio (3.2x) compared to the DE Electronic industry average (1.7x).


Next Steps

Future Growth

How is AAC Technologies Holdings forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

23.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A2XN's forecast earnings growth (23.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: A2XN's earnings (23.5% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A2XN's revenue (14.5% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: A2XN's revenue (14.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A2XN's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has AAC Technologies Holdings performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A2XN has high quality earnings.

Growing Profit Margin: A2XN's current net profit margins (14.4%) are lower than last year (22.4%).


Past Earnings Growth Analysis

Earnings Trend: A2XN's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: A2XN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: A2XN had negative earnings growth (-45.3%) over the past year, making it difficult to compare to the Electronic industry average (-3.9%).


Return on Equity

High ROE: A2XN's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AAC Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: A2XN's short term assets (CN¥10.7B) exceed its short term liabilities (CN¥6.7B).

Long Term Liabilities: A2XN's short term assets (CN¥10.7B) exceed its long term liabilities (CN¥4.0B).


Debt to Equity History and Analysis

Debt Level: A2XN's debt to equity ratio (33%) is considered satisfactory.

Reducing Debt: A2XN's debt to equity ratio has increased from 13.7% to 33% over the past 5 years.

Debt Coverage: A2XN's debt is well covered by operating cash flow (79%).

Interest Coverage: A2XN's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet

Inventory Level: A2XN has a high level of physical assets or inventory.

Debt Coverage by Assets: A2XN's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is AAC Technologies Holdings's current dividend yield, its reliability and sustainability?

2.76%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.5%markettop25%3.9%industryaverage1.4%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: A2XN's dividend (2.57%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: A2XN's dividend (2.57%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

Stable Dividend: A2XN's dividend payments have been volatile in the past 10 years.

Growing Dividend: A2XN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.4%), A2XN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A2XN's dividends in 3 years are forecast to be well covered by earnings (40.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Benjamin Pan (50yo)

CN¥4,536,000

Compensation

Mr. Zhengmin Pan, also known as Benjamin, serves as Chief Executive Officer and Executive Director of AAC Technologies Holdings Inc. Mr. Pan co-founded AAC Technologies Group in 1993. He is responsible for ...


CEO Compensation Analysis

Compensation vs Market: Benjamin's total compensation ($USD647.58K) is below average for companies of similar size in the German market ($USD3.74M).

Compensation vs Earnings: Benjamin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Zhengmin Pan
Co-Founder0yrsCN¥4.54m19.24% CN¥1.4b
Joe Mok
Executive Director14.8yrsCN¥7.99m0.0083% CN¥595.3k
Jack Duan
Chief Operating Officer5.3yrsno datano data
Jin Ye
Human Resources & Administrational Director0yrsno datano data
Eddie Kung
Head of Investor Relations0yrsno datano data
David Plekenpol
Chief Strategy Officer10yrsno datano data
Pan Kaitai
Chief Innovation Officer0.5yrsno datano data
Tai On Lo
Company Secretary0yrsno datano data

5.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: A2XN's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhengmin Pan
Co-Founder0yrsCN¥4.54m19.24% CN¥1.4b
Joe Mok
Executive Director14.8yrsCN¥7.99m0.0083% CN¥595.3k
Lam Kwong Kwok
Independent Non-Executive Director2yrsCN¥481.00kno data
Boon Hwee Koh
Independent Chairman of the Board0yrsCN¥1.06m0.066% CN¥4.7m
Chung Yin Poon
Independent Non-Executive Director10.3yrsCN¥698.00kno data
Chun Wu
Non-Executive Director16.2yrsCN¥466.00k21.75% CN¥1.6b
Hongjiang Zhang
Independent Non Executive Director1.1yrsno data0.0083% CN¥595.3k
Siu Cheung Au
Independent Non-Executive Director2yrsCN¥579.00kno data
Zhiyuan Peng
Independent Non Executive Director1.1yrsno datano data

6.2yrs

Average Tenure

59yo

Average Age

Experienced Board: A2XN's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AAC Technologies Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AAC Technologies Holdings Inc.
  • Ticker: A2XN
  • Exchange: DB
  • Founded: 1993
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: HK$61.694b
  • Listing Market Cap: HK$7.198b
  • Shares outstanding: 1.21b
  • Website: https://www.aactechnologies.com

Number of Employees


Location

  • AAC Technologies Holdings Inc.
  • Nanjing University Research Centre Shenzhen Branch
  • Block A
  • Shenzhen
  • Guangdong Province
  • 518057
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2018SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2005
AACA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2005
A2XNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2005
2018SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 2005
2018SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDAug 2005
AACA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

AAC Technologies Holdings Inc., an investment holding company, provides miniaturized technology components to the consumer electronics industry worldwide. The company operates through Dynamic Components, electromagnetic drives and precision components, Micro Electro-Mechanical System Components, and Other Products segments. It researches, develops, manufactures, and sells acoustic products, electronic components, tooling and precision components, and electronics related accessories and components; and offers electroplating services. Its products include miniature speaker modules, receivers, and speakers; optics, RF antennas traditional microphones, and headsets; and LDS antenna. The company’s products are used in smartphones. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 21:20
End of Day Share Price2020/02/28 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.