Goldman Sachs raised its revenue forecast for AAC Tech (02018) in 2025-2027 by 1%. This is due to the growth in revenue from smart phone camera and MEMS microphone business, which is driven by upgrades in pixel combination and better specifications of smartphones. The bank raised its operating expenses to reflect increased R&D expenses for new products, raised the target price by 13% from HKD 33.8 to HKD 38.2, and maintained a "Buy" rating.
Goldman Sachs released a research report stating that it has raised its revenue forecast for AAC Tech (02018) in 2025-2027 by 1%. This is due to the growth in revenue from smart phone camera and MEMS microphone business, which is driven by upgrades in pixel combination and better specifications of smartphones. The bank raised its operating expenses to reflect increased R&D expenses for new products, raised the target price by 13% from HKD 33.8 to HKD 38.2, and maintained a "Buy" rating.
The bank believes that the recovery of AAC Tech's gross margin in 2024 is positive, as the shipment of mobile phone lenses increases and the pixel combination is upgraded, which is expected to help boost gross margin. At the same time, the bank believes that AI smartphones bring opportunities for the group to upgrade its specifications, further enhancing AI functionality on its devices. The bank expects the group's operating profit margin to recover to 7%/8% in 2024-2025.