SEHK:2018

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AAC Technologies Holdings

Executive Summary

AAC Technologies Holdings Inc., an investment holding company, provides solutions to enhance user experience of smart mobile devices in China and internationally. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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: 2018's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.5%

2018

1.3%

HK Electronic

0.1%

HK Market


1 Year Return

-6.8%

2018

-2.3%

HK Electronic

2.0%

HK Market

Return vs Industry: 2018 underperformed the Hong Kong Electronic industry which returned -2.8% over the past year.

Return vs Market: 2018 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

2018IndustryMarket
7 Day-0.5%1.3%0.1%
30 Day0.2%4.0%2.4%
90 Day-26.9%-8.4%-0.4%
1 Year-6.6%-6.8%0.8%-2.3%6.3%2.0%
3 Year-65.9%-67.8%-33.9%-39.4%-5.7%-16.0%
5 Year-1.9%-10.3%16.6%0.9%16.4%-3.4%

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

Valuation

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

25.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2018 (HK$43.75) is trading above our estimate of fair value (HK$21.53)

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 (25.7x) compared to the HK Electronic industry average (13.4x).

PE vs Market: 2018 is poor value based on its PE Ratio (25.7x) compared to the Hong Kong market (11.3x).


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 (2.3x) compared to the HK Electronic industry average (0.8x).


Next Steps

Future Growth

How is AAC Technologies Holdings forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2018's forecast earnings growth (24.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 2018's earnings (24.2% per year) are forecast to grow faster than the Hong Kong market (22.2% per year).

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

Revenue vs Market: 2018's revenue (12.2% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 2018's revenue (12.2% 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 (15%).


Next Steps

Past Performance

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

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2018 has high quality earnings.

Growing Profit Margin: 2018's current net profit margins (9.8%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: 2018's earnings have declined by 4.8% per year over the past 5 years.

Accelerating Growth: 2018's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2018 had negative earnings growth (-36.3%) over the past year, making it difficult to compare to the Electronic industry average (-15.1%).


Return on Equity

High ROE: 2018's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is AAC Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2018's short term assets (CN¥13.9B) exceed its short term liabilities (CN¥7.7B).

Long Term Liabilities: 2018's short term assets (CN¥13.9B) exceed its long term liabilities (CN¥7.1B).


Debt to Equity History and Analysis

Debt Level: 2018's debt to equity ratio (44.4%) is considered high.

Reducing Debt: 2018's debt to equity ratio has increased from 14.9% to 44.4% over the past 5 years.

Debt Coverage: 2018's debt is well covered by operating cash flow (40.3%).

Interest Coverage: 2018's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2018's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 2018's dividend (0.46%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.86%).


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?

2.5yrs

Average management tenure


CEO

Benjamin Pan (51 yo)

no data

Tenure

CN¥4,812,000

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 ($USD720.75K) is about average for companies of similar size in the Hong Kong market ($USD634.84K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Zhengmin Pan
Co-Founderno dataCN¥4.81m19.24%
CN¥ 10.4b
Joe Kuen Mok
Executive Director15.5yrsCN¥6.72m0.0083%
CN¥ 4.5m
Jack Yunjian Duan
Chief Operating Officer6yrsno datano data
Jin Ye
Human Resources & Administrational Directorno datano datano data
Joyce Kwock
Head of Investor Relationsno datano datano data
Siu Tak Ho
Legal Director & Company Secretary2.5yrsno datano data
Chulho Kim
Chairman of Asia Pacific Region0.92yrno datano data
David Plekenpol
Chief Strategy Officer and Chairman of European & American Regions10.67yrsno datano data
Kaitai Pan
Chief Innovation Officer and Senior VP of R&D and IT1.17yrsno datano data
Guo Dan
Special Assistant to CEOno datano datano data

2.5yrs

Average Tenure

49.5yo

Average Age

Experienced Management: 2018's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Zhengmin Pan
Co-Founderno dataCN¥4.81m19.24%
CN¥ 10.4b
Joe Kuen Mok
Executive Director15.5yrsCN¥6.72m0.0083%
CN¥ 4.5m
Lam Kwong Kwok
Independent Non-Executive Director2.67yrsCN¥612.00kno data
Chun Yuan Wu
Non-Executive Director16.83yrsCN¥411.00k21.75%
CN¥ 11.7b
Hongjiang Zhang
Independent Chairman of the Board0.42yrCN¥467.00k0.0083%
CN¥ 4.5m
Siu Cheung Au
Independent Non-Executive Director2.67yrsCN¥784.00kno data
Zhiyuan Peng
Independent Non Executive Director1.75yrsCN¥533.00kno data

2.7yrs

Average Tenure

56yo

Average Age

Experienced Board: 2018's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


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: 2018
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: HK$54.020b
  • Shares outstanding: 1.21b
  • Website: https://www.aactechnologies.com

Number of Employees


Location

  • AAC Technologies Holdings Inc.
  • Nanjing Univ Research Ctr Shenzhen Br
  • 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 solutions to enhance user experience of smart mobile devices in China and internationally. The company operates through Dynamic Compo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 12:51
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.