Goldman Sachs published a research report indicating that they felt positive about AAC Tech's gross margin recovery this year due to higher mobile phone shipments and upgraded pixel combinations driving gross margin rebound. At the same time, the bank also sees an opportunity for spec upgrades with AI smartphones, allowing AAC to benefit. The bank believes the company's EBIT gross profit margin will recover from the lows of 2% in 2023 to 7% and 8% in the next two years. Goldman Sachs extended their valuation basis to next year, using a P/E ratio of 20.5 times, raising AAC's target price from HKD33.8 to HKD38.2, and reaffirming its “buy” rating. The bank also raised its revenue forecasts for AAC from 2025 to 2027 by 1%, 1%, and 1%, as the upgraded pixel combination and upgraded specifications of AI smartphones drove the increase in revenue forecast for AAC's smartphone camera lenses and MEMS microphone businesses. The bank also increased its operating expenditure forecasts to reflect increased R&D spending on new products. In addition, the bank maintains its earnings estimates for AAC in 2025 and 2027 roughly unchanged.