Stock Analysis

Why AAC Technologies Holdings Inc. (HKG:2018) Could Be Worth Watching

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SEHK:2018
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AAC Technologies Holdings Inc. (HKG:2018), is not the largest company out there, but it saw significant share price movement during recent months on the SEHK, rising to highs of HK$18.92 and falling to the lows of HK$12.66. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether AAC Technologies Holdings' current trading price of HK$12.66 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at AAC Technologies Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for AAC Technologies Holdings

Is AAC Technologies Holdings Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 7.9% below my intrinsic value, which means if you buy AAC Technologies Holdings today, you’d be paying a fair price for it. And if you believe that the stock is really worth HK$13.75, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, AAC Technologies Holdings’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from AAC Technologies Holdings?

earnings-and-revenue-growth
SEHK:2018 Earnings and Revenue Growth September 30th 2022

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for AAC Technologies Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? 2018’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on 2018, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about AAC Technologies Holdings as a business, it's important to be aware of any risks it's facing. While conducting our analysis, we found that AAC Technologies Holdings has 1 warning sign and it would be unwise to ignore it.

If you are no longer interested in AAC Technologies Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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Find out whether AAC Technologies Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About SEHK:2018

AAC Technologies Holdings

AAC Technologies Holdings Inc., an investment holding company, provides solutions for smart devices in Mainland China, Hong Kong Special Administrative Region of the People’s Republic of China, Taiwan, other Asian countries, the United States, and Europe.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation0
Future Growth4
Past Performance1
Financial Health5
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Excellent balance sheet with reasonable growth potential.