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2018

AAC Technologies HoldingsSEHK:2018 Stock Report

Market Cap

HK$46.0b

7D

-4.8%

1Y

-8.3%

Updated

25 Sep, 2021

Data

Company Financials +
2018 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends0/6

2018 Overview

AAC Technologies Holdings Inc., an investment holding company, provides solutions to enhance user experience of smart mobile devices in Mainland China, Hong Kong SAR, Taiwan, other Asian countries, the United States, and Europe.

AAC Technologies Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AAC Technologies Holdings
Historical stock prices
Current Share PriceHK$38.10
52 Week HighHK$37.80
52 Week LowHK$60.00
Beta1.19
1 Month Change-9.61%
3 Month Change-34.25%
1 Year Change-8.30%
3 Year Change-53.14%
5 Year Change-51.12%
Change since IPO1,109.52%

Recent News & Updates

Sep 07
Here's Why AAC Technologies Holdings (HKG:2018) Can Manage Its Debt Responsibly

Here's Why AAC Technologies Holdings (HKG:2018) Can Manage Its Debt Responsibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 29
Here's What's Concerning About AAC Technologies Holdings' (HKG:2018) Returns On Capital

Here's What's Concerning About AAC Technologies Holdings' (HKG:2018) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...

Jul 16
Calculating The Fair Value Of AAC Technologies Holdings Inc. (HKG:2018)

Calculating The Fair Value Of AAC Technologies Holdings Inc. (HKG:2018)

In this article we are going to estimate the intrinsic value of AAC Technologies Holdings Inc. ( HKG:2018 ) by...

Jun 08
What Does AAC Technologies Holdings Inc.'s (HKG:2018) Share Price Indicate?

What Does AAC Technologies Holdings Inc.'s (HKG:2018) Share Price Indicate?

AAC Technologies Holdings Inc. ( HKG:2018 ), is not the largest company out there, but it led the SEHK gainers with a...

Shareholder Returns

2018HK ElectronicHK Market
7D-4.8%-5.3%-2.4%
1Y-8.3%38.1%9.1%

Return vs Industry: 2018 underperformed the Hong Kong Electronic industry which returned 38.1% over the past year.

Return vs Market: 2018 underperformed the Hong Kong Market which returned 9.1% over the past year.

Price Volatility

Is 2018's price volatile compared to industry and market?
2018 volatility
2018 Beta1.19
Industry Beta0.98
Market Beta1

Stable Share Price: 2018 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2018's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199341,165Benjamin Panhttps://www.aactechnologies.com

AAC Technologies Holdings Inc., an investment holding company, provides solutions to enhance user experience of smart mobile devices in Mainland China, Hong Kong SAR, Taiwan, other Asian countries, the United States, and Europe. It operates through Dynamic Components, Electromagnetic Drives and Precision Mechanics, Optics Products, Micro Electro-Mechanical System Components, and Other Products segments. The company researches, develops, manufactures, and sells acoustic products, electronic components, tooling and precision components, and electronics related accessories and components; and offers electroplating services.

AAC Technologies Holdings Fundamentals Summary

How do AAC Technologies Holdings's earnings and revenue compare to its market cap?
2018 fundamental statistics
Market CapCN¥38.24b
Earnings (TTM)CN¥2.11b
Revenue (TTM)CN¥17.91b

18.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2018 income statement (TTM)
RevenueCN¥17.91b
Cost of RevenueCN¥13.09b
Gross ProfitCN¥4.82b
ExpensesCN¥2.72b
EarningsCN¥2.11b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.74
Gross Margin26.93%
Net Profit Margin11.76%
Debt/Equity Ratio43.9%

How did 2018 perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

19%

Payout Ratio

Valuation

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

18.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2018 (HK$38.1) is trading above our estimate of fair value (HK$32.02)

Significantly Below Fair Value: 2018 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2018 is poor value based on its PE Ratio (18.1x) compared to the Hong Kong Electronic industry average (8.7x).

PE vs Market: 2018 is poor value based on its PE Ratio (18.1x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 2018 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 2018 is overvalued based on its PB Ratio (1.8x) compared to the HK Electronic industry average (0.8x).


Future Growth

How is AAC Technologies Holdings forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2018's forecast earnings growth (16.5% per year) is above the savings rate (1.5%).

Earnings vs Market: 2018's earnings (16.5% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 2018's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2018's revenue (14% per year) is forecast to grow faster than the Hong Kong market (12.3% per year).

High Growth Revenue: 2018's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2018's Return on Equity is forecast to be low in 3 years time (11.8%).


Past Performance

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

-19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2018 has high quality earnings.

Growing Profit Margin: 2018's current net profit margins (11.8%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: 2018's earnings have declined by 19.6% per year over the past 5 years.

Accelerating Growth: 2018's earnings growth over the past year (18.8%) exceeds its 5-year average (-19.6% per year).

Earnings vs Industry: 2018 earnings growth over the past year (18.8%) underperformed the Electronic industry 50.5%.


Return on Equity

High ROE: 2018's Return on Equity (9.4%) is considered low.


Financial Health

How is AAC Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2018's short term assets (CN¥18.1B) exceed its short term liabilities (CN¥9.0B).

Long Term Liabilities: 2018's short term assets (CN¥18.1B) exceed its long term liabilities (CN¥10.1B).


Debt to Equity History and Analysis

Debt Level: 2018's debt to equity ratio (43.9%) is considered high.

Reducing Debt: 2018's debt to equity ratio has increased from 19.8% to 43.9% over the past 5 years.

Debt Coverage: 2018's debt is well covered by operating cash flow (33.9%).

Interest Coverage: 2018's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Dividend

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

1.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2018's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 2018's dividend (1.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.83%).


Stability and Growth of Payments

Stable Dividend: 2018 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2018 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2018 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2018's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Benjamin Pan (52 yo)

no data

Tenure

CN¥4,913,000

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 ($USD759.83K) is about average for companies of similar size in the Hong Kong market ($USD620.61K).

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


Leadership Team

Experienced Management: 2018's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: 2018's board of directors are considered experienced (3.6 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 employee growth, exchange listings and data sources


Key Information

  • Name: AAC Technologies Holdings Inc.
  • Ticker: 2018
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: HK$46.044b
  • Shares outstanding: 1.21b
  • Website: https://www.aactechnologies.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 10:03
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.