Core Viewpoint - AAC Technologies (瑞声科技) reported record revenue of RMB 27.33 billion for the fiscal year 2024, marking a year-on-year increase of 33.8% and a significant improvement in profitability with a net profit growth of 142.7% to RMB 1.8 billion [1] Group 1: Financial Performance - The company's gross margin improved to 22.1%, an increase of 5.2 percentage points year-on-year [1] - The optical business generated revenue of RMB 5 billion for the full year 2024, reflecting a year-on-year growth of 37.9% and a gross margin increase of 19.5 percentage points to 6.5% [1] Group 2: Optical Business Developments - In the second half of 2024, the optical business revenue reached RMB 2.79 billion, showing a year-on-year increase of 50.2% and a quarter-on-quarter increase of 26.0% [1] - The shipment of 6P and above plastic lenses is on the rise, with 6P lens shipments exceeding 18% in the second half of 2024, and expected to continue increasing in 2025 [2] - The optical module revenue grew significantly by 55.2% year-on-year, with 32M pixel and above module shipments accounting for 32.0% of total shipments, an increase of nearly 4 percentage points year-on-year [2] Group 3: WLG Technology and Applications - The WLG (Wafer Level Glass) lens technology has been adopted in several mid-to-high-end models, including Redmi K50 and Sony Xperia pro-I, showcasing its optical performance advantages [3] - The management highlighted the unique advantages of WLG in producing micro-prisms, which enhances production efficiency and precision, with products already recognized by clients [3] Group 4: Future Growth Areas - The company is strategically positioned in the automotive optical sector, collaborating with leading overseas new energy clients on high-spec projects that are set to enter mass production [3] - In XR optics, AAC Technologies is focusing on opportunities in diffractive waveguides and light engines, with successful partnerships established for production lines and multiple client projects in development [4]

Core Insights - 瑞声科技 reported record high revenue of RMB 27.33 billion for the fiscal year 2024, representing a year-on-year growth of 33.8% [1] - The gross profit margin improved to 22.1%, an increase of 5.2 percentage points year-on-year, while net profit surged by 142.7% to RMB 1.8 billion, indicating a significant enhancement in profitability [1] - The automotive acoustic business achieved revenue of RMB 3.52 billion with a gross profit margin of 24.8%, demonstrating resilience in a competitive market [1] Company Developments - 瑞声科技 completed the first phase of the acquisition of Premium Sound Solutions (PSS) in February 2024, now holding 80% equity in PSS, which will be consolidated into 瑞声科技's overall performance [1] - PSS is a leading global supplier of high-end audio systems with over 50 years of experience in the automotive industry, serving as a Tier 1 supplier for several automotive OEMs [1] Market Position and Strategy - Following the acquisition, 瑞声科技 has integrated resources to create a vertically integrated solution encompassing speakers, amplifiers, algorithms, and tuning services, enhancing customer loyalty and facilitating rapid commercial expansion in the automotive acoustic market [2] - PSS holds a leading market share among top-tier automotive companies in Europe and the US, reinforcing 瑞声科技's strong influence in the global automotive acoustic sector [2] - 瑞声科技 and PSS's products are supplied to prominent new energy vehicle brands in China, including 理想, 吉利, 小米, and 小鹏, with their NLC Pro algorithm being adopted by leading luxury car brands [2]

Core Viewpoint - 瑞声科技 has achieved significant growth in 2024, with revenue reaching 27.33 billion RMB and a net profit of 1.797 billion RMB, marking a year-on-year increase of 142.7% [1][3] Group 1: Optical Business - The optical segment experienced a remarkable turnaround in 2024, with revenue increasing by 37.9% and gross margin rising by 19.5 percentage points, becoming a key driver of profit [4] - The growth is attributed to the rising shipment proportion of high-end 6P lenses and the global exclusive WLG (wafer-level glass) technology, which has significantly improved yield and capacity [4] - WLG glass-plastic hybrid lens shipments are expected to exceed 10 million units in 2025, representing a substantial increase compared to the previous year, with major clients adopting this technology [4] Group 2: Acoustic and Precision Components - 瑞声科技's acoustic business continues to grow, with revenue of 8.21 billion RMB in 2024, a year-on-year increase of 9.5% [5] - The electromagnetic drive and precision components segment saw a revenue increase of 31.3% to 6.07 billion RMB, with a quarter-on-quarter rise of 67% [5] - The company has become a leading supplier of metal structural components for mid-to-high-end models in the Android market, holding about half of the market share in the Android thermal management sector [5] Group 3: Automotive Sector - 瑞声科技 has successfully extended its system integration capabilities from mobile phones to the automotive sector, with automotive revenue reaching 3.52 billion RMB and a gross margin of 24.8% in 2024 [6] - The company has formed strategic partnerships, enhancing its market share in the global automotive sector and receiving high recognition for its integrated hardware and software solutions [6] - The company’s products are widely used by both traditional and new automotive brands, including Xiaomi and Li Auto, with significant production capacity and rapid delivery [6] Group 4: AI Glasses and Robotics - 瑞声科技 is leveraging its perception technology to enter the AI glasses and robotics markets, establishing a unique competitive edge [8] - In the AI glasses sector, the company has developed a full-stack technology loop, becoming a major supplier for leading AR/AI glasses manufacturers [9] - The company is transitioning from a component supplier to a system-level perception solution provider in the robotics field, focusing on humanoid robots and achieving key technological breakthroughs [10][11] Conclusion - 瑞声科技 has transformed from a single-technology component supplier to a system integrator of perception experience technology, marking a significant evolution in its business model [12]

Investment Rating - The report maintains a "Buy" rating for the company, raising the target price to HKD 60.5, indicating a potential upside of 16% from the current price of HKD 52.05 [1][3][11]. Core Insights - The company is expected to achieve steady growth across all business segments by 2025, including acoustic, optical, precision sensing, structural components, sensors, and semiconductors. The short-term growth is supported by favorable policies in China for consumer electronics, with robust demand for components such as acoustic, optical, motors, metal frames, and cooling systems for mobile phones and laptops [1][11]. - The automotive acoustic business has begun to penetrate leading new energy vehicle manufacturers, indicating potential for significant growth. Additionally, the company is expanding into robotics, establishing a foundation for long-term growth [11]. - The company's financial performance in the second half of 2024 showed strong revenue growth of 44% year-on-year, with a gross margin improvement to 22.5%. Operating profit and net profit also saw substantial increases, aligning with previous profit guidance [11][13]. Financial Projections - Revenue is projected to grow from RMB 20,419 million in 2023 to RMB 39,767 million by 2027, with a compound annual growth rate (CAGR) of approximately 14% [2][12]. - Net profit is expected to increase from RMB 740 million in 2023 to RMB 2,831 million in 2027, reflecting a significant growth trajectory [2][12]. - The target price is derived from a sum-of-the-parts valuation method, applying different price-to-earnings (PE) ratios to various business segments, resulting in a target price of HKD 60.5 [11][17].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：2018） 截至2024年12月31日止年度之業績公佈 瑞聲科技控股有限公司（「瑞聲科技」或「本公司」）董事（「董事」）會（「董事會」） 欣然公佈，本公司及其附屬公司（統稱為「本集團」）截至2024年12月31日止年度之綜合財 務報表連同2023年同期之比較數字。 該等綜合財務報表已由本公司核數師德勤 • 關黃陳方會計師行及本公司審核及風險委員會 （「審核及風險委員會」）審閱，並經董事會於2025年3月20日批准。 | （人民幣百萬元） | 2024年 | | | 2024年 | 2023年 | | | --- | --- | --- | --- | --- | --- | --- | | | | 2023年 | 按年 % | 下半年 | 下半年 | 按年 % | | 收入 | 27,328 | 20,419 | +33.8% | 16,081 | 11,20 ...

Core Viewpoint - 瑞声科技 has been actively repurchasing its shares, indicating a strategy to support its stock price amidst recent declines [1] Group 1: Share Buyback Activity - On February 28, 瑞声科技 repurchased 526,000 shares at a price range of HKD 44.250 to HKD 47.250, totaling HKD 23.6996 million [1] - The stock closed at HKD 44.800 on the same day, reflecting a decline of 6.67% with a total trading volume of HKD 863 million [1] - Since February 10, the company has conducted buybacks for 15 consecutive days, acquiring a total of 2.612 million shares for a cumulative amount of HKD 122 million [1] Group 2: Year-to-Date Buyback Summary - Year-to-date, 瑞声科技 has executed 35 buybacks, acquiring a total of 6.8095 million shares for a total expenditure of HKD 276 million [1] - During this period, the stock has experienced a cumulative decline of 2.61% [1]

Investment Rating - The report maintains a "Buy" rating for AAC Tech, with a target price raised to HK$53.48, corresponding to a P/E ratio of 25.2 times FY25 earnings [1][4][19]. Core Insights - AAC Tech is expected to see a significant net profit increase of 130-145% year-on-year for FY24, reaching between RMB 17 billion and 18.2 billion, driven by the recovery in the global smartphone market and product upgrades across various segments [1][2]. - The company is projected to benefit from trends such as AI and foldable smartphones, as well as new orders in automotive audio systems from major clients like Xiaomi and Huawei [1][3][4]. - The report anticipates a revenue growth of over 10% in FY25, with a gross profit margin (GPM) target of 22-25% [3][4]. Summary by Sections Financial Performance - FY22 revenue was RMB 20.625 billion, with a 16.7% year-on-year growth, while FY23 revenue slightly declined by 1% to RMB 20.419 billion. For FY24, revenue is expected to increase by 35.2% to RMB 27.613 billion, followed by FY25 and FY26 with projected revenues of RMB 31.383 billion and RMB 34.183 billion respectively [5][23]. - Net profit for FY22 was RMB 821.3 million, which decreased by 37.6% year-on-year. In FY24, net profit is expected to rebound significantly to RMB 1.776 billion, with further growth to RMB 2.273 billion in FY25 and RMB 2.751 billion in FY26 [5][23]. Earnings Estimates - The report revises FY24-26 earnings per share (EPS) estimates upward by 1-4%, reflecting improvements in optical, acoustic, and MEMS sectors [1][19]. - The new EPS estimates for FY24, FY25, and FY26 are RMB 1.51, RMB 1.93, and RMB 2.34 respectively, with corresponding P/E ratios of 28.9, 22.6, and 18.7 [5][19]. Market Position and Catalysts - AAC Tech is positioned to capitalize on the launch of AI and foldable smartphones, new AI smart glasses, and automotive audio orders, which are expected to drive future growth [1][4][19]. - The report highlights the importance of product upgrades in various segments, including acoustic, MEMS, thermal management, and optical, as key growth drivers [1][3][4].

Investment Rating - The report maintains a "BUY" rating for AAC Tech, with a target price raised to HK$53.48, implying a 14.9% upside from the current price of HK$46.55 [1][3][15]. Core Insights - AAC Tech is expected to experience significant earnings growth of 130-145% YoY for FY24, driven by a recovery in the global smartphone market, specification upgrades across various segments, and improved operational efficiency [1][8]. - The company is projected to benefit from trends in AI and foldable phones, as well as new product launches such as AI smart glasses and auto acoustics orders [1][8]. - The report anticipates continued earnings growth of 28% and 21% for FY25 and FY26, respectively, supported by a favorable product mix and margin improvements [1][8]. Financial Summary - Revenue is expected to grow from RMB 20,419 million in FY23 to RMB 27,613 million in FY24, representing a 35.2% YoY increase [2][21]. - Net profit is projected to rise from RMB 740.4 million in FY23 to RMB 1,776.3 million in FY24, reflecting a 139.9% YoY growth [2][21]. - The report revises FY24-26E EPS forecasts upward by 1-4% due to anticipated specification upgrades and margin improvements [1][9][15]. Revenue Breakdown - For FY24, revenue from acoustics is expected to be RMB 8,680 million, while PSS (Power Supply Solutions) is projected at RMB 3,125 million [13]. - The revenue mix indicates that acoustics will account for approximately 31% of total revenue in FY25, with PSS contributing around 11% [13]. Valuation - The new target price of HK$53.48 is based on a sum-of-the-parts (SOTP) valuation, reflecting different growth profiles across business segments [15][16]. - The target price implies a P/E ratio of 25.2x for FY25E, aligning with industry peers [15][16].

Group 1 - Goldman Sachs is optimistic about AAC Technologies' profitability, expecting its operating profit margin to gradually increase from 7% in 2024 to 10% by 2027 [1] - Goldman Sachs maintains a "Buy" rating on AAC Technologies and has raised its target price from HKD 47 to HKD 48, citing benefits from increased smartphone lens shipments, improved product mix, expansion in the automotive acoustics market, and enhanced sound quality for high-end smartphones [2]

Summary of Key Points Core Viewpoint - The stock of AAC Technologies Holdings Inc. closed at HKD 36.250, experiencing a decline of 3.33% with a total trading volume of HKD 149 million on the day [1]. Stock Performance - The stock has cumulatively decreased by 1.36% during the observed period [2]. Share Buyback Details - AAC Technologies announced a share buyback on January 2, purchasing 314,000 shares at prices ranging from HKD 36.050 to HKD 37.650, totaling HKD 11.5184 million [3]. - Since December 17, 2024, the company has conducted buybacks for 10 consecutive days, acquiring a total of 2.4445 million shares with an aggregate buyback amount of HKD 91.0215 million [4].