Company Coverage
AAC Technologies (2018 HK): 1H26: Earnings Miss On Weak Smartphone Shipments, But Expanding Guidance And Emerging Segments Support Outlook
BUY (Upgraded)
Current price:
Target price:
Upside:
Previous TP :
HK$39.12
HK$47.80
+22.2%
HK$45.00
Analyst
Analyst
Highlights
- 1H26 revenue and net profit missed expectations on weak smartphone shipment volumes and high opex.
- Emerging growth drivers set to deliver in the near term as non-smartphone diversification gains traction.
- Upgrade to BUY with a higher target price of HK$47.80

Analysis
- Top- and bottom line growth missed consensus expectations. Revenue rose 8.9% yoy but fell 21.6% hoh to Rmb14.5b, missing consensus estimates by 5.6% due to weaker smartphone shipment volumes. Supported by premiumisation and an expanding share of higher-margin non-smartphone related revenue, gross margin expanded 1.7ppt yoy but compressed 0.7ppt hoh to 22.4%, slightly beating consensus estimates. Net profit grew by 2.9% yoy but dropped 44.9% hoh to Rmb901.3m, missing consensus estimates by 8.9% as R&D and selling costs drove operating expenses higher than expected.

Highlights
- 1H26 revenue and net profit missed expectations on weak smartphone shipment volumes and high opex.
- Emerging growth drivers set to deliver in the near term as non-smartphone diversification gains traction.
- Upgrade to BUY with a higher target price of HK$47.80

Analysis
- Top- and bottom line growth missed consensus expectations. Revenue rose 8.9% yoy but fell 21.6% hoh to Rmb14.5b, missing consensus estimates by 5.6% due to weaker smartphone shipment volumes. Supported by premiumisation and an expanding share of higher-margin non-smartphone related revenue, gross margin expanded 1.7ppt yoy but compressed 0.7ppt hoh to 22.4%, slightly beating consensus estimates. Net profit grew by 2.9% yoy but dropped 44.9% hoh to Rmb901.3m, missing consensus estimates by 8.9% as R&D and selling costs drove operating expenses higher than expected.

BUY (Upgraded)
Current price:
Target price:
Upside:
Previous TP :
HK$39.12
HK$47.80
+22.2%
HK$45.00
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Related articles

18 Aug 2026
Cowell E Holdings Inc (1415 HK): 1H26: Strong Bottom Line Beat On Better-than-expected Profitability

20 Aug 2026
Ping An Healthcare and Technology Company (1833 HK): 1H26: Bottom Line Beat On Margin Expansion; Non-core Business Run-off Weighs On 2026 Revenue

21 Aug 2026
Han’s Laser (002008 CH): 2Q26: Robust Growth With Beats Across The Board
Our latest research

21 Aug 2026
CSPC Pharmaceutical Group (1093 HK): 1H26: Results Beat; Out-licensing Income Boosts Earnings Growth

21 Aug 2026
AIA Group (1299 HK): 1H26: VONB A Slight Miss; Upgrading OPAT Guidance

21 Aug 2026
