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
Rewards
Risk Analysis
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
| 2018 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | 1.3% | 0.1% |
| 30 Day | 0.2% | 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
1 day ago | Simply Wall St
Is The Market Rewarding AAC Technologies Holdings Inc. (HKG:2018) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?2 weeks ago | Simply Wall St
Here's What To Make Of AAC Technologies Holdings' (HKG:2018) Returns On Capital3 weeks ago | Simply Wall St
Is AAC Technologies Holdings (HKG:2018) Using Too Much Debt?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | CN¥4.81m | 19.24% CN¥ 10.4b | |
| Executive Director | 15.5yrs | CN¥6.72m | 0.0083% CN¥ 4.5m | |
| Chief Operating Officer | 6yrs | no data | no data | |
| Human Resources & Administrational Director | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Legal Director & Company Secretary | 2.5yrs | no data | no data | |
| Chairman of Asia Pacific Region | 0.92yr | no data | no data | |
| Chief Strategy Officer and Chairman of European & American Regions | 10.67yrs | no data | no data | |
| Chief Innovation Officer and Senior VP of R&D and IT | 1.17yrs | no data | no data | |
| Special Assistant to CEO | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | CN¥4.81m | 19.24% CN¥ 10.4b | |
| Executive Director | 15.5yrs | CN¥6.72m | 0.0083% CN¥ 4.5m | |
| Independent Non-Executive Director | 2.67yrs | CN¥612.00k | no data | |
| Non-Executive Director | 16.83yrs | CN¥411.00k | 21.75% CN¥ 11.7b | |
| Independent Chairman of the Board | 0.42yr | CN¥467.00k | 0.0083% CN¥ 4.5m | |
| Independent Non-Executive Director | 2.67yrs | CN¥784.00k | no data | |
| Independent Non Executive Director | 1.75yrs | CN¥533.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2018 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Aug 2005 |
| AACA.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Aug 2005 |
| A2XN | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Aug 2005 |
| 2018 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Aug 2005 |
| 2018 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Aug 2005 |
| AACA.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 12:51 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.