External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

AAC Technologies Holdings / Equity Bottom-Up

<ul><li>AAC’s 1H25 revenue/NP (+18%/63% YoY) were in-line with our/consensus estimates on solid sale growth and one-off fair value gains (PSS), despite lower GPM at 20.7% (vs 21.5%/22.5% in 1H24/2H24) given seasonality and product transitions.</li><li>During the earnings call, mgmt. guided a solid set of sales (2H growth higher than 1H growth) and GPM (FY25E GPM above FY24), which should ease investor concerns over GPM miss and demand uncertainties.</li><li>We believe the market concern is overdone and recommend to accumulate on corrections, as we see AAC as the major beneficiary of AI-driven spec upgrade cycle (acoustics/optics/MEMS/VC), capturing opportunities in AI/foldable phones/AI glasses/robotics. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC’s 1H25 revenue/NP (+18%/63% YoY) were in-line with our/consensus estimates on solid sale growth and one-off fair value gains (PSS), despite lower GPM at 20.7% (vs 21.5%/22.5% in 1H24/2H24) given seasonality and product transitions.During the earnings call, mgmt. guided a solid set of sales (2H growth higher than 1H growth) and GPM (FY25E GPM above FY24), which should ease investor concerns over GPM miss and demand uncertainties.We believe the market concern is overdone and recommend to accumulate on corrections, as we see AAC as the major beneficiary of AI-driven spec upgrade cycle (acoustics/optics/MEMS/VC), capturing opportunities in AI/foldable phones/AI glasses/robotics. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - 1H25 In-Line Despite GPM Dip

<ul><li>We estimate AAC to deliver strong revenue/net profit growth of 24%/66% YoY in 1H25E, driven by 1) Acoustics/automotive PSS: Android master-SLS/combo speaker upgrade, AI glasses orders and domestic client wins in auto acoustics;</li><li>2) Electromagnetic drive: haptics spec upgrade and new product ramp-up;</li><li>3) Precision mechanics: Android foldable phone casing, VC in AI phones and hinge order wins...</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We estimate AAC to deliver strong revenue/net profit growth of 24%/66% YoY in 1H25E, driven by 1) Acoustics/automotive PSS: Android master-SLS/combo speaker upgrade, AI glasses orders and domestic client wins in auto acoustics;2) Electromagnetic drive: haptics spec upgrade and new product ramp-up;3) Precision mechanics: Android foldable phone casing, VC in AI phones and hinge order wins...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - 1H25 Preview: Structural Upgrade Cycle Across Multiple Segments

<ul><li>We visited AAC’s mgmt. in Shenzhen recently, and overall we are positive on AAC’s business outlook and revenue growth in 2025, driven by: 1) optics: spec upgrade in plastic lens (6P/7P) and HCM (OIS/ telescope), as well as WLG flagship order wins in 2H25E;</li><li>2) Precision mechanics: VC adoption in AI phone and hinge order wins across overseas/Chinese clients;</li><li>3) Electromagnetic drive: haptics upgrade and robotics order wins</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We visited AAC’s mgmt. in Shenzhen recently, and overall we are positive on AAC’s business outlook and revenue growth in 2025, driven by: 1) optics: spec upgrade in plastic lens (6P/7P) and HCM (OIS/ telescope), as well as WLG flagship order wins in 2H25E;2) Precision mechanics: VC adoption in AI phone and hinge order wins across overseas/Chinese clients;3) Electromagnetic drive: haptics upgrade and robotics order winsContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - Multiple Growth Drivers from Optics, Automotive and Robotics

<ul><li>AAC delivered 2H24 revenue/NP growth of 44%/114% YoY, with earnings 2%/8% above our/consensus estimates, thanks to strength across all segments and strong GPM at 22.5% (vs 19.2%/21.5% in 2H23/1H24).</li><li>Looking into 2025, we are positive on AAC as a major beneficiary of spec upgrade (acoustics/optics/MEMS/VC) for AI smartphones/AI glasses and global share gains in auto acoustics.</li><li>Overall, we lift our FY25-26E EPS estimates by 10%/7% to factor in FY24 results, better GPM outlook and spec upgrade opportunities across multiple edge AI devices in 2025-26. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC delivered 2H24 revenue/NP growth of 44%/114% YoY, with earnings 2%/8% above our/consensus estimates, thanks to strength across all segments and strong GPM at 22.5% (vs 19.2%/21.5% in 2H23/1H24).Looking into 2025, we are positive on AAC as a major beneficiary of spec upgrade (acoustics/optics/MEMS/VC) for AI smartphones/AI glasses and global share gains in auto acoustics.Overall, we lift our FY25-26E EPS estimates by 10%/7% to factor in FY24 results, better GPM outlook and spec upgrade opportunities across multiple edge AI devices in 2025-26. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - Beneficiary of Edge AI Upgrade Cycle; Raise TP to HK$58.78

<ul><li>AAC reported a positive profit alert with 2024 earnings growth of 130-145% YoY to RMB 1.7bn-1.82bn, with mid-point in-line with our estimates and 5% above consensus.</li><li>The strong results were driven by global smartphone recovery, spec upgrade across segments (acoustics/MEMS/haptics/thermal/optics), auto acoustics PSS integration and improving efficiency.</li><li>Looking ahead to 2025, we believe AAC will continue to benefit from content value increase in AI/foldable phones (acoustics/MEMS/thermal/haptics/hinge/optics), AI smart glasses (MEMS/acoustics), and order wins in auto acoustics (Xiaomi/HW/Li/XPeng). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC reported a positive profit alert with 2024 earnings growth of 130-145% YoY to RMB 1.7bn-1.82bn, with mid-point in-line with our estimates and 5% above consensus.The strong results were driven by global smartphone recovery, spec upgrade across segments (acoustics/MEMS/haptics/thermal/optics), auto acoustics PSS integration and improving efficiency.Looking ahead to 2025, we believe AAC will continue to benefit from content value increase in AI/foldable phones (acoustics/MEMS/thermal/haptics/hinge/optics), AI smart glasses (MEMS/acoustics), and order wins in auto acoustics (Xiaomi/HW/Li/XPeng). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AAC Tech (2018 HK) - Multiple Growth Drivers and Improving Margin to Continue into 2025

China

AAC Technologies Holdings Inc designs, develops and manufactures a broad range of miniaturized components that include speakers, receivers and microphones in the acoustic segment and others such as haptics vibrators, RF and antennas, and optical lenses. AAC's products are found in mobile devices such as smartphones, tablets, wearables, ultrabooks, notebooks and electronic book-readers.

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AAC Technologies Holdings (2018 HK)

AAC Tech (2018 HK) - 1H25 In-Line Despite GPM Dip

AAC’s 1H25 revenue/NP (+18%/63% YoY) were in-line with our/consensus estimates on solid sale growth and one-off fair value gains (PSS), despite...

CMB International

AAC Tech (2018 HK) - 1H25 Preview: Structural Upgrade Cycle Across Multiple Segments

We estimate AAC to deliver strong revenue/net profit growth of 24%/66% YoY in 1H25E, driven by 1) Acoustics/automotive PSS: Android master-SLS...

CMB International

AAC Tech (2018 HK) - Multiple Growth Drivers from Optics, Automotive and Robotics

In addition, we expect acoustics upgrade (master-level SLS/Combo) and optics’ improving mix (6P+/WLG) will drive margin expansion into 2025/26E.

CMB International

AAC Tech (2018 HK) - Beneficiary of Edge AI Upgrade Cycle; Raise TP to HK$58.78

Our new SOTP-based TP of HK$58.78 implies 25.2x FY25E P/E. Reiterate BUY. Nearterm catalysts include AI glasses/phone upgrade, auto client wins and...

CMB International

AAC Tech (2018 HK) - Multiple Growth Drivers and Improving Margin to Continue into 2025

AAC reported a positive profit alert with 2024 earnings growth of 130-145% YoY to RMB 1.7bn-1.82bn, with mid-point in-line with our estimates and...

CMB International

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