AAC Technologies Holdings (SEHK:2018) Stock Valuation, Peer Comparison & Price Targets

Q: What is the Fair Price of 2018 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

2018 (HK$31.75) is trading below our estimate of [[fair value]] (HK$34.56)

Share Price vs Fair Value

What is the Fair Price of 2018 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2018 (HK$31.75) is trading below our estimate of fair value (HK$34.56)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2018?

Key metric: As 2018 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2018. This is calculated by dividing 2018's market cap by their current earnings.
What is 2018's PE Ratio?
PE Ratio	31.4x
Earnings	CN¥1.13b
Market Cap	CN¥35.40b

2018 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.8x
Enterprise Value/EBITDA	10.4x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does 2018's PE Ratio compare to its peers?

The above table shows the PE ratio for 2018 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.8x
1050 Karrie International Holdings	9.4x	n/a	HK$1.6b
1611 Sinohope Technology Holdings	21.2x	n/a	HK$1.1b
1415 Cowell e Holdings	59.4x	35.0%	HK$20.6b
6088 FIT Hon Teng	17.4x	31.7%	HK$23.0b
2018 AAC Technologies Holdings	31.4x	21.7%	HK$38.1b

Price-To-Earnings vs Peers: 2018 is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the peer average (26.8x).

Price to Earnings Ratio vs Industry

How does 2018's PE Ratio compare vs other companies in the HK Electronic Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
76 Elate Holdings	0.6x	n/a	US$18.18m
1822 China Wood International Holding	0.06x	n/a	US$8.98m
911 Qianhai Health Holdings	0.7x	n/a	US$6.86m

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2018 is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the Hong Kong Electronic industry average (8.8x).

Price to Earnings Ratio vs Fair Ratio

What is 2018's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2018 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.4x
Fair PE Ratio	16.9x

Price-To-Earnings vs Fair Ratio: 2018 is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2018 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$31.75	HK$35.84 +12.9%	20.8%	HK$46.96	HK$15.21	n/a	23
Nov ’25	HK$30.50	HK$35.62 +16.8%	20.2%	HK$44.83	HK$15.44	n/a	25
Oct ’25	HK$31.90	HK$35.96 +12.7%	20.1%	HK$45.53	HK$15.68	n/a	26
Sep ’25	HK$33.15	HK$34.78 +4.9%	23.7%	HK$45.74	HK$13.19	n/a	27
Aug ’25	HK$28.15	HK$30.20 +7.3%	24.4%	HK$44.99	HK$12.98	n/a	27
Jul ’25	HK$30.70	HK$28.80 -6.2%	20.4%	HK$38.12	HK$12.95	n/a	26
Jun ’25	HK$24.05	HK$27.04 +12.4%	20.5%	HK$36.57	HK$13.01	n/a	25
May ’25	HK$25.00	HK$26.78 +7.1%	20.1%	HK$33.62	HK$13.02	n/a	24
Apr ’25	HK$26.25	HK$25.94 -1.2%	22.6%	HK$33.67	HK$13.04	n/a	26
Mar ’25	HK$19.98	HK$19.73 -1.2%	22.3%	HK$28.91	HK$12.47	n/a	23
Feb ’25	HK$17.32	HK$19.87 +14.7%	22.0%	HK$28.94	HK$12.48	n/a	24
Jan ’25	HK$23.20	HK$18.03 -22.3%	22.1%	HK$29.23	HK$12.23	n/a	24
Dec ’24	HK$21.55	HK$17.79 -17.5%	20.3%	HK$25.53	HK$12.32	n/a	24
Nov ’24	HK$14.30	HK$17.51 +22.4%	19.3%	HK$24.15	HK$12.08	HK$30.50	25
Oct ’24	HK$13.40	HK$17.79 +32.7%	20.3%	HK$24.59	HK$12.09	HK$31.90	26
Sep ’24	HK$15.20	HK$18.57 +22.2%	19.0%	HK$24.78	HK$12.50	HK$33.15	27
Aug ’24	HK$17.34	HK$19.23 +10.9%	19.3%	HK$25.01	HK$12.04	HK$28.15	26
Jul ’24	HK$18.44	HK$18.57 +0.7%	19.0%	HK$24.76	HK$11.82	HK$30.70	26
Jun ’24	HK$15.18	HK$18.89 +24.4%	19.1%	HK$25.37	HK$12.12	HK$24.05	26
May ’24	HK$16.50	HK$19.54 +18.5%	19.4%	HK$26.17	HK$12.50	HK$25.00	25
Apr ’24	HK$19.36	HK$20.05 +3.6%	17.1%	HK$26.19	HK$12.79	HK$26.25	24
Mar ’24	HK$18.38	HK$19.01 +3.4%	22.9%	HK$27.54	HK$10.39	HK$19.98	25
Feb ’24	HK$21.40	HK$18.93 -11.5%	26.4%	HK$28.79	HK$9.94	HK$17.32	25
Jan ’24	HK$17.84	HK$18.40 +3.2%	25.9%	HK$27.68	HK$9.56	HK$23.20	25
Dec ’23	HK$18.08	HK$17.93 -0.8%	25.6%	HK$27.01	HK$9.40	HK$21.55	26
Nov ’23	HK$15.56	HK$14.71 -5.5%	19.3%	HK$21.75	HK$9.31	HK$14.30	26

Analyst Forecast: Target price is less than 20% higher than the current share price.

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AAC Technologies Holdings Valuation