AAC Technology (02018.HK) GPM fell in 2Q21 qoq in four major businesses, FY21 net profit is still expected to reverse three-year negative growth September 27, 2021 175

PSR Recommendation: BUY Status: Upgraded
Target Price: HKDHKD49.95

Investment Summary
AAC Technology announced the company’s interim results as of 30 June 2021. During the
period, the Group’s revenue was RMB 8.6 billion (+9.9% yoy and + 0.6% qoq). The gross profit
was 2.4 billion (+32.8% yoy) and the gross profit margin was 28.1% (+4.9 ppts yoy). The Q2
gross profit margin was 25.0% (-6.1 ppts qoq). The net profit was RMB 921 million (+ 187.4%
yoy and -26.9% qoq). The net profit margin was 10.7% (+6.6 ppts) and the Q2 profit margin
was 9.0% (-3.4 ppts qoq). The company’s performance in the second quarter was lower than
expected, mainly due to: 1) the recurring epidemic in the second quarter, especially in
Vietnam, 2) the shortage of upstream chips and insufficient capacity utilization of the
company’s overseas factories, 3) the average unit price of major customer products decreased

About the author

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Samuel Sung
Analyst
Research

宋承軒先生 (Samuel Sung) 分析師 宋承軒先生本科畢業於香港科技大學數學系,以優異成績畢業於英國紐卡素大學獲取國際金融分析碩士學位。宋先生現為輝立証券持牌分析師,主要覆蓋TMT行業。 Samuel Sung graduated from Hong Kong University of Science and Technology with BSc in Mathematics and obtained Master’s Degree with distinction in International Financial Analysis from Newcastle University. Samuel is currently a licensed research analyst at Phillip Securities and covers the TMT sector.

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