OTCPK:AACA.F

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.

Rewards

Earnings are forecast to grow 21.05% per year

Risk Analysis

Shares are highly illiquid

Unstable dividend track record

Profit margins (14.4%) are lower than last year (22.4%)



Snowflake Analysis

Excellent balance sheet with reasonable growth potential and pays a dividend.


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


Market Performance


7 Day Return

3.1%

AACA.F

2.0%

US Electronic

2.0%

US Market


1 Year Return

39.8%

AACA.F

27.4%

US Electronic

23.6%

US Market

Return vs Industry: AACA.F exceeded the US Electronic industry which returned 30.2% over the past year.

Return vs Market: AACA.F exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

AACA.FIndustryMarket
7 Day3.1%2.0%2.0%
30 Day2.3%2.9%3.9%
90 Day45.6%11.2%12.0%
1 Year39.8%39.8%28.7%27.4%26.2%23.6%
3 Year-10.9%-10.9%54.6%50.3%53.2%43.3%
5 Year45.1%45.1%90.0%80.5%75.7%56.3%

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

No news available

Valuation

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

27.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AACA.F ($8.62) is trading above our estimate of fair value ($6.3)

Significantly Below Fair Value: AACA.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AACA.F is poor value based on its PE Ratio (27.7x) compared to the Electronic industry average (21.2x).

PE vs Market: AACA.F is poor value based on its PE Ratio (27.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AACA.F is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AACA.F is overvalued based on its PB Ratio (3.8x) compared to the US Electronic industry average (2.1x).


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?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AACA.F's forecast earnings growth (21.1% per year) is above the savings rate (1.7%).

Earnings vs Market: AACA.F's earnings (21.1% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: AACA.F's revenue (14.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: AACA.F's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AACA.F's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

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

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AACA.F has high quality earnings.

Growing Profit Margin: AACA.F's current net profit margins (14.4%) are lower than last year (22.4%).


Past Earnings Growth Analysis

Earnings Trend: AACA.F's earnings have grown by 8.7% per year over the past 5 years.

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

Earnings vs Industry: AACA.F had negative earnings growth (-45.3%) over the past year, making it difficult to compare to the Electronic industry average (53.6%).


Return on Equity

High ROE: AACA.F's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AAC Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AACA.F's short term assets (CN¥10.7B) exceed its short term liabilities (CN¥6.7B).

Long Term Liabilities: AACA.F's short term assets (CN¥10.7B) exceed its long term liabilities (CN¥4.0B).


Debt to Equity History and Analysis

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

Reducing Debt: AACA.F's debt to equity ratio has increased from 13.7% to 33% over the past 5 years.

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

Interest Coverage: AACA.F's interest payments on its debt are well covered by EBIT (14.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: AACA.F's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: AACA.F's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: AACA.F's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.4%), AACA.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AACA.F's dividends in 3 years are forecast to be thoroughly covered by earnings (10.8% 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?

5.3yrs

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 ($USD658.37K) is below average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

5.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: AACA.F's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

59yo

Average Age

Experienced Board: AACA.F's board of directors are considered experienced (6.1 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

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Independent Non Executive Director
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Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Tai On Lo (65yo)

    Company Secretary

    • Richard Mok (55yo)

      Executive Director

      • Tenure: 14.8yrs
      • Compensation: CN¥7.99m
    • Benjamin Pan (50yo)

      Co-Founder

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

      Human Resources & Administrational Director

      • David Plekenpol (59yo)

        Chief Strategy Officer

        • Tenure: 9.9yrs
      • Jack Duan (46yo)

        Chief Operating Officer

        • Tenure: 5.3yrs
      • Eddie Kung

        Head of Investor Relations

        • Pan Kaitai

          Chief Innovation Officer

          • Tenure: 0.4yrs

        Board Members

        • Larry Kwok (63yo)

          Independent Non-Executive Director

          • Tenure: 1.9yrs
          • Compensation: CN¥481.00k
        • Boon Hwee Koh (68yo)

          Independent Chairman of the Board

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

          Independent Non-Executive Director

          • Tenure: 10.3yrs
          • Compensation: CN¥698.00k
        • Ingrid Wu (48yo)

          Non-Executive Director

          • Tenure: 16.1yrs
          • Compensation: CN¥466.00k
        • Richard Mok (55yo)

          Executive Director

          • Tenure: 14.8yrs
          • Compensation: CN¥7.99m
        • Benjamin Pan (50yo)

          Co-Founder

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

          Independent Non Executive Director

          • Tenure: 1yrs
        • Albert Au (67yo)

          Independent Non-Executive Director

          • Tenure: 1.9yrs
          • Compensation: CN¥579.00k
        • Zhiyuan Peng (46yo)

          Independent Non Executive Director

          • Tenure: 1yrs

        Company Information

        AAC Technologies Holdings Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: AAC Technologies Holdings Inc.
        • Ticker: AACA.F
        • Exchange: OTCPK
        • Founded: 1993
        • Industry: Electronic Manufacturing Services
        • Sector: Tech
        • Market Cap: HK$78.673b
        • Listing Market Cap: HK$10.128b
        • 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, electromagnetic drives and precision components, Micro Electro-Mechanical System Components, and Other Products segments. It researches, develops, manufactures, and sells acoustic products, electronic components, tooling and precision components, and electronics related accessories and components; and offers electroplating services. Its products include miniature speaker modules, receivers, and speakers; optics, RF antennas traditional microphones, and headsets; and LDS antenna. The company’s products are used in smartphones. The company was formerly known as AAC Acoustic Technologies Holdings Inc. and changed its name to AAC Technologies Holdings Inc. in May 2011. AAC Technologies Holdings Inc. was founded in 1993 and is headquartered in Shenzhen, China. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/19 00:00
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        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.