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AAC Technologies Holdings

2018.HK
56
Hardware, Equipment & Parts · Technology
Price
HK$36.06
-1.30 (-3.48%)
Market Cap
HK$41.68B
Exchange
Hong Kong Stock Exchange
Winston Score
56
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 12, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
8/30
Growth
Exceptional
17/20
Cash Flow
Exceptional
9/10
Stability
Strong
7/10
Valuation
Mixed
4/10
Ownership
Not counted
n/a
Dividends
Not counted
n/a

45 of 80 counted points = Winston Score 56. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count falling — buybacks

−4.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.21B (2021) → 1.15B (2025)

§Winston Score History

The full picture

AAC Technologies is a Chinese company that makes tiny components found inside smartphones and other electronic devices. Its main products include miniature speakers, microphones, haptic motors (the parts that make your phone vibrate), and precision optics like camera lens modules. Major customers include leading smartphone brands such as Apple, Samsung, and several large Chinese phone makers.

The company earns revenue by manufacturing and selling these components at scale, operating primarily from factories in China and Vietnam. AAC is one of the world's largest suppliers of micro-acoustic components, and its ability to miniaturize parts while maintaining quality gives it a strong position with top-tier customers. Growth depends on expanding into newer areas like automotive components and AR/VR devices, but the business faces risk from smartphone market slowdowns and increasing competition from other Asian component makers.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+114.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+105.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥2.5B/ year

↑ Rising (+12% vs prior year)

7.8% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Cash Position

Cash flow positive

¥8.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

AAC Technologies Holdings grew revenue 115% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
21.1%
Thin — 21.1% gross margin
Profit after running costs
Operating Margin
6.6%
Modest — 6.6% operating margin
Return on the money invested
ROCE
7.7%
Weak — 7.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+44.3%
Fast-growing sales (+44.3% YoY)
Profit growth
EPS YoY
+51.7%
Earnings growing fast (+51.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
284%
Turns 284% of profit into real cash
Spare cash per sale
FCF Margin
13.6%
Converts sales into free cash efficiently (13.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.40
Conservative — low debt load (0.40)
Covers its interest
Interest Cover
6.23x
Adequate interest coverage (6.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
16.4x
Fair value — P/E 16.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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