SEHK:2018

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

Fundamentals

Excellent balance sheet average dividend payer.


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


Market Performance


7 Day Return

4.1%

2018

1.3%

HK Electronic

0.3%

HK Market


1 Year Return

-26.4%

2018

-1.0%

HK Electronic

1.3%

HK Market

Return vs Industry: 2018 underperformed the Hong Kong Electronic industry which returned -1% over the past year.

Return vs Market: 2018 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

2018IndustryMarket
7 Day4.1%1.3%0.3%
30 Day8.9%-1.4%0.5%
90 Day4.4%6.2%-4.6%
1 Year-23.7%-26.4%2.3%-1.0%4.9%1.3%
3 Year-33.6%-38.1%-0.8%-8.7%15.3%3.7%
5 Year14.6%2.7%54.1%34.1%20.0%-0.006%

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?

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2018 (HK$46.95) is trading below our estimate of fair value (HK$59.75)

Significantly Below Fair Value: 2018 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2018 is poor value based on its PE Ratio (18.5x) compared to the Electronic industry average (9x).

PE vs Market: 2018 is poor value based on its PE Ratio (18.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2018 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 2018 is overvalued based on its PB Ratio (2.8x) compared to the HK Electronic industry average (0.9x).


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?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2018's forecast earnings growth (17.8% per year) is above the savings rate (2%).

Earnings vs Market: 2018's earnings (17.8% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 2018's revenue (9.1% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 2018's revenue (9.1% 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 (14.6%).


Next Steps

Past Performance

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

12.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2018's earnings have grown by 12.1% 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 (-44%) over the past year, making it difficult to compare to the Electronic industry average (-10.9%).


Return on Equity

High ROE: 2018's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: 2018 has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: 2018's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is AAC Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2018's short term assets (CN¥10.7B) exceeds its short term liabilities (CN¥6.7B)

Long Term Liabilities: 2018's short term assets (10.7B) exceeds its long term liabilities (4.0B)


Debt to Equity History and Analysis

Debt Level: 2018's debt to equity ratio (33%) is considered satisfactory

Reducing Debt: 2018's debt to equity ratio has increased from 11.7% to 33% over the past 5 years.

Debt Coverage: 2018's debt is well covered by operating cash flow (79%).

Interest Coverage: 2018's interest payments on its debt are well covered by EBIT (17.2x coverage).


Balance Sheet

Inventory Level: 2018 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2018's debt is covered by short term assets (assets are 1.778570x debt).


Next Steps

Dividend

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

3.04%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.3%markettop25%6.2%industryaverage2.8%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2018's dividend (3.04%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2018's dividend (3.04%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).

Stable Dividend: 2018's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2018's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), 2018's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2018's dividends in 3 years are forecast to be well covered by earnings (22.3% payout ratio).


Next Steps

Management

What is the CEO of AAC Technologies Holdings's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Benjamin Pan (50yo)

0yrs

Tenure

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 ($USD640.96K) is about average for companies of similar size in the Hong Kong market ($USD582.48K).

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


Management Age and Tenure

5.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 2018's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

59yo

Average Age

Experienced Board: 2018's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellCN¥191,743,27717 Oct 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares4,155,594
Max PriceCN¥46.14
BuyCN¥256,957,07915 Oct 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares5,746,809
Max PriceCN¥44.71
SellCN¥125,130,19313 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares3,172,407
Max PriceCN¥39.44
BuyCN¥149,149,90910 Sep 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares3,989,555
Max PriceCN¥37.39
BuyCN¥30,917,86822 Aug 19
GIC Pte. Ltd.
EntityCompany
Shares795,000
Max PriceCN¥38.89
SellCN¥185,187,28208 Jul 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares3,956,055
Max PriceCN¥46.81
SellCN¥1,217,08908 Jul 19
Highbridge Capital Management, LLC
EntityCompany
Shares26,000
Max PriceCN¥46.81
BuyCN¥25,978,50505 Jul 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares545,414
Max PriceCN¥47.63
BuyCN¥70,295,93327 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,591,486
Max PriceCN¥44.17
BuyCN¥4,200,00027 May 19
Hongjiang Zhang
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares100,000
Max PriceCN¥42.00
BuyCN¥87,181,51122 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares2,010,755
Max PriceCN¥43.36
SellCN¥26,635,68017 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares590,585
Max PriceCN¥45.10
BuyCN¥122,084,68113 May 19
GIC Pte. Ltd.
EntityCompany
Shares2,596,000
Max PriceCN¥47.03
BuyCN¥51,587,56209 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,045,773
Max PriceCN¥49.33
SellCN¥373,348,19103 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares7,099,427
Max PriceCN¥52.59
BuyCN¥33,825,82730 Apr 19
GIC Pte. Ltd.
EntityCompany
Shares642,000
Max PriceCN¥52.69
SellCN¥1,466,681,74919 Apr 19
Capital Research and Management Company
EntityCompany
Shares28,202,925
Max PriceCN¥52.00
SellCN¥251,057,87517 Apr 19
Capital Research and Management Company
EntityCompany
Shares4,733,253
Max PriceCN¥53.04
SellCN¥761,11212 Apr 19
Capital Group International Inc.
EntityCompany
Shares14,500
Max PriceCN¥52.49
SellCN¥700,275,77712 Apr 19
Capital Research and Management Company
EntityCompany
Shares13,341,000
Max PriceCN¥52.49
SellCN¥671,795,39411 Apr 19
Capital Research and Management Company
EntityCompany
Shares12,724,000
Max PriceCN¥52.80
BuyCN¥19,834,86811 Apr 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares391,598
Max PriceCN¥50.65
SellCN¥218,872,27106 Apr 19
Capital Research and Management Company
EntityCompany
Shares4,355,000
Max PriceCN¥50.26
SellCN¥144,916,14403 Apr 19
Capital Research and Management Company
EntityCompany
Shares3,033,000
Max PriceCN¥47.78
SellCN¥81,018,37829 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,702,936
Max PriceCN¥47.58
SellCN¥130,202,01429 Mar 19
Capital Research and Management Company
EntityCompany
Shares2,803,335
Max PriceCN¥46.45
BuyCN¥92,287,05527 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares2,007,209
Max PriceCN¥45.98
SellCN¥444,943,55927 Mar 19
Capital Research and Management Company
EntityCompany
Shares9,155,500
Max PriceCN¥48.60
SellCN¥64,146,47022 Mar 19
Capital Research and Management Company
EntityCompany
Shares1,426,000
Max PriceCN¥44.98
SellCN¥85,455,88322 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,881,215
Max PriceCN¥45.43
BuyCN¥80,005,18420 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,760,050
Max PriceCN¥45.46
SellCN¥120,383,35618 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares2,574,676
Max PriceCN¥46.76
SellCN¥126,106,06413 Mar 19
Capital Research and Management Company
EntityCompany
Shares2,673,500
Max PriceCN¥47.17
SellCN¥2,116,39812 Mar 19
Highbridge Capital Management, LLC
EntityCompany
Shares42,500
Max PriceCN¥49.80
BuyCN¥89,558,28812 Mar 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares1,798,446
Max PriceCN¥49.80
BuyCN¥281,75512 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares5,658
Max PriceCN¥49.80
BuyCN¥19,72012 Mar 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares396
Max PriceCN¥49.80
SellCN¥281,75512 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares5,658
Max PriceCN¥49.80
SellCN¥76,840,27111 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,504,324
Max PriceCN¥51.08
SellCN¥191,074,91101 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares3,667,141
Max PriceCN¥52.10
SellCN¥93,398,95314 Feb 19
Capital Research and Management Company
EntityCompany
Shares1,858,571
Max PriceCN¥50.25
SellCN¥310,638,22204 Feb 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares6,428,625
Max PriceCN¥48.32
SellCN¥6,378,38504 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares132,000
Max PriceCN¥48.32
SellCN¥1,932,84404 Feb 19
China International Fund Management Company Limited
EntityCompany
Shares40,000
Max PriceCN¥48.32
SellCN¥2,416,05504 Feb 19
Highbridge Capital Management, LLC
EntityCompany
Shares50,000
Max PriceCN¥48.32
BuyCN¥8,481,89904 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares175,532
Max PriceCN¥48.32
BuyCN¥966,42204 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares20,000
Max PriceCN¥48.32
SellCN¥694,10304 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares14,500
Max PriceCN¥47.87
BuyCN¥234,722,41704 Feb 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares4,903,412
Max PriceCN¥47.87
BuyCN¥694,10304 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares14,500
Max PriceCN¥47.87
BuyCN¥1,675,42204 Feb 19
Highbridge Capital Management, LLC
EntityCompany
Shares35,000
Max PriceCN¥47.87
BuyCN¥1,029,18804 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares21,500
Max PriceCN¥47.87
SellCN¥43,42901 Feb 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares900
Max PriceCN¥48.25
SellCN¥385,642,64001 Feb 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares7,991,931
Max PriceCN¥48.25
SellCN¥1,206,35001 Feb 19
Highbridge Capital Management, LLC
EntityCompany
Shares25,000
Max PriceCN¥48.25
BuyCN¥30,252,31501 Feb 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares626,939
Max PriceCN¥48.25
BuyCN¥892,69901 Feb 19
J.P. Morgan Asset Management, Inc.
EntityCompany
Shares18,500
Max PriceCN¥48.25
BuyCN¥410,121,23731 Jan 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares8,519,680
Max PriceCN¥48.14
SellCN¥119,733,69023 Jan 19
Capital Research and Management Company
EntityCompany
Shares2,519,500
Max PriceCN¥47.52
SellCN¥20,022,49921 Dec 18
Capital Research and Management Company
EntityCompany
Shares425,500
Max PriceCN¥47.06
SellCN¥115,401,00906 Dec 18
Capital Research and Management Company
EntityCompany
Shares2,018,100
Max PriceCN¥57.18
BuyCN¥180,663,58413 Nov 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares3,159,885
Max PriceCN¥57.17
SellCN¥199,245,63431 Oct 18
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares3,500,967
Max PriceCN¥56.91
BuyCN¥196,759,19626 Oct 18
Capital Research and Management Company
EntityCompany
Shares3,084,000
Max PriceCN¥63.80

Ownership Breakdown


Management Team

  • Tai On Lo (65yo)

    Company Secretary

    • Tenure: 0yrs
  • Richard Mok (55yo)

    Executive Director

    • Tenure: 14.5yrs
    • Compensation: CN¥7.99m
  • Benjamin Pan (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥4.54m
  • Catherine Ye (47yo)

    Human Resources & Administrational Director

    • Tenure: 0yrs
  • David Plekenpol (59yo)

    Chief Strategy Officer

    • Tenure: 9.7yrs
  • Jack Duan (46yo)

    Chief Operating Officer

    • Tenure: 5yrs
  • Eddie Kung

    Head of Investor Relations

    • Tenure: 0yrs
  • Pan Kaitai

    Chief Innovation Officer

    • Tenure: 0.2yrs

Board Members

  • Larry Kwok (63yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥481.00k
  • Boon Hwee Koh (68yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CN¥1.06m
  • Joseph Poon (64yo)

    Independent Non-Executive Director

    • Tenure: 10yrs
    • Compensation: CN¥698.00k
  • Ingrid Wu (48yo)

    Non-Executive Director

    • Tenure: 15.8yrs
    • Compensation: CN¥466.00k
  • Richard Mok (55yo)

    Executive Director

    • Tenure: 14.5yrs
    • Compensation: CN¥7.99m
  • Benjamin Pan (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥4.54m
  • Hongjiang Zhang (59yo)

    Independent Non Executive Director

    • Tenure: 0.8yrs
  • Albert Au (67yo)

    Independent Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥579.00k
  • Zhiyuan Peng (46yo)

    Independent Non Executive Director

    • Tenure: 0.8yrs

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$58.854b
  • 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, e ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:43
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.