Group 1: Company Performance - Horizon Robotics-W (09660.HK) reported better-than-expected performance, with projected revenues of 3.4 billion, 5.2 billion, and 6.9 billion for 2025-2027, reflecting year-on-year growth of 43%, 52%, and 34% respectively [8] - The company is currently in a growth phase with its joint venture with Volkswagen, which may impact its performance in the near term [8] - The non-GAAP net profit forecast for Horizon Robotics is projected to be -1.13 billion, -250 million, and 690 million for 2025-2027 [8] Group 2: Industry Insights - The macroeconomic report indicates that MLF rates are expected to exit the policy rate stage, with a shift in focus towards reverse repo rates and LPR for future interest rate adjustments [3] - The coal industry, represented by China Coal Energy (601898.SH), is experiencing a slight overperformance, with a focus on cost reduction and efficiency improvements [6] - The home appliance sector, represented by Anfu Technology (603031.SH), shows steady revenue growth with a 7.4% increase in total revenue for 2024, and a significant 45.2% increase in net profit [7]

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].

Core Viewpoint - Despite a significant decline in the Hong Kong stock market, some low-priced stocks experienced substantial gains, indicating potential investment opportunities amidst market volatility [1][3]. Group 1: Market Performance - On March 21, the Hong Kong stock market saw major indices decline, with the Hang Seng Index dropping by 2.19% and the Hang Seng Tech Index falling by 3.37% [1]. - Notably, low-priced stocks such as New Yaohai surged, with a peak increase of 162.5% during the trading session [3][5]. Group 2: Company Analysis - New Yaohai, primarily engaged in luxury car distribution, reported a significant revenue decline of 39.66% year-on-year, with a net loss of 563 million HKD for the first half of the fiscal year ending September 30, 2024 [4]. - The company's luxury car sales, including brands like Lamborghini and Bentley, also saw substantial decreases, with Lamborghini sales down by 25.2% and Bentley sales down by 36.2% [4]. Group 3: Analyst Upgrades - Foreign institutions are actively raising target prices for several Chinese assets, including Tencent, China Mobile, and others, indicating a positive outlook for these companies [8][10]. - Nomura upgraded Tencent's target price from 500 HKD to 648 HKD, citing strong performance in gaming and advertising sectors [9]. - UBS raised China Mobile's target price by 14% to 103 HKD, projecting a compound annual growth rate of 5% for net profit from 2024 to 2027 [10].

Financial Performance - The company reported a revenue of RMB 27.328 billion for the year ending December 31, 2024, representing a year-on-year increase of 33.8%[4]. - Gross profit reached RMB 6.042 billion, up 75.0% compared to RMB 3.452 billion in 2023, with a gross margin of 22.1%, an increase of 5.2 percentage points[4]. - Net profit attributable to shareholders surged by 142.7% to RMB 1.797 billion, with a net profit margin of 6.6%, up 3.0 percentage points from the previous year[4]. - Operating cash inflow was RMB 5.2 billion, reflecting a year-on-year growth of 12.3%, with a capital expenditure of RMB 2.33 billion[13]. - The company reported a total comprehensive income of RMB 1,873,374 thousand for 2024, compared to RMB 612,602 thousand in 2023, marking a substantial increase of 205.5%[76]. - Basic earnings per share for 2024 was RMB 1.53, compared to RMB 0.63 in 2023, reflecting a 142.9% increase[74]. - The total assets as of December 31, 2024, amounted to RMB 32,296,847 thousand, up from RMB 28,781,395 thousand in 2023, indicating a growth of 17.5%[79]. Business Segments - The optical business revenue increased by 37.9% year-on-year, contributing significantly to overall growth[8]. - The acoustic business achieved revenue of RMB 8.21 billion for the year, a 9.5% increase, with a gross margin of 30.2%, up 1.8 percentage points[14]. - The automotive acoustic business generated revenue of RMB 3.52 billion in 2024, with a gross margin of 24.8%, highlighting the synergy with PSS[17]. - The overall optical business achieved revenue of RMB 5.0 billion in 2024, a year-on-year growth of 37.9%, with a gross margin increase of 19.5 percentage points[19]. - The electromagnetic transmission and precision components segment reported revenue of RMB 6.07 billion in the second half of 2024, a year-on-year increase of 31.3%[21]. - The revenue from the Acoustics segment was RMB 8,213,816 thousand in 2024, up from RMB 7,498,965 thousand in 2023, indicating a growth of about 9.5%[93]. - The revenue from the Electromagnetic Drive and Precision Components segment increased to RMB 9,709,775 thousand in 2024, compared to RMB 8,245,314 thousand in 2023, reflecting a growth of approximately 17.7%[93]. - The Optical Products segment saw revenue rise to RMB 4,999,937 thousand in 2024, up from RMB 3,626,935 thousand in 2023, marking an increase of around 37.8%[93]. Acquisitions and Investments - The company successfully completed the first phase acquisition of Premium Sound Solutions (PSS) in February 2024, positively impacting profits and providing new momentum in the automotive market[7]. - The company acquired 80% of the issued shares of Acoustics Solutions International B.V. and its subsidiaries, marking a strategic expansion into the automotive and consumer acoustics market[89]. - The total acquisition cost for PSS Group was RMB 3,445,370,000, with cash and cash equivalents of RMB 451,422,000 deducted[183]. - The profit attributable to PSS Group for the year ending December 31, 2024, is estimated at RMB 239,439,000, contributing to total revenue of RMB 3,359,569,000[183]. Research and Development - Research and development expenses rose by 28.5% to RMB 2.022 billion in 2024, driven by additional investments in new R&D projects, including automotive acoustics and AR/VR[32]. - The company plans to embrace new technology trends such as AI, new energy vehicles, AR/VR, and robotics to accelerate product innovation and diversify business growth engines[10]. - Employee costs included in R&D amounted to RMB 1,410,066,000 in 2024, up from RMB 979,975,000 in 2023, reflecting a significant increase[28]. Financial Stability and Liquidity - The company aims to enhance operational efficiency through lean management and maintain a prudent financial policy to support long-term value creation for shareholders[10]. - The group’s debt-to-asset ratio was 20.0% as of December 31, 2024, down from 22.6% in 2023, indicating improved financial stability[49]. - The group’s net debt-to-asset ratio was 3.8%, down from 5.1% in 2023, indicating a stronger balance sheet[49]. - The company’s liquidity remains strong, with cash used in investing activities increasing to RMB 3.485 billion in 2024 from RMB 1.5118 billion in 2023[45]. - The group reported a decrease in tax expenses to RMB 227 million in 2024, down 10.0% from RMB 252 million in 2023, mainly due to the utilization of previously unrecognized tax losses[35]. Shareholder Returns - The board proposed a final dividend of HKD 0.24 per share for the 2024 fiscal year, a 140% increase from HKD 0.10 in 2023[13]. - The company plans to declare a final dividend of HKD 0.24 per share for 2024, up from HKD 0.10 per share in 2023, pending shareholder approval[116]. Risks and Compliance - The group is facing risks from geopolitical tensions affecting global supply chains and commodity prices, which could impact production and financial performance[57]. - The company has implemented a comprehensive quality management system to ensure all products meet customer requirements and international standards[59]. - The company is actively considering environmental factors in product design and development to meet changing consumer preferences and regulatory requirements[59]. - The group has established a quality and operations committee to monitor regulatory environments and ensure compliance with international quality standards, enhancing supply chain resilience[58]. Market Dependency - The group relies heavily on five major customers, which accounted for 69.9% of total revenue in 2024, highlighting a significant dependency risk[55]. - The group is diversifying its revenue sources by expanding into the automotive market through a major acquisition, aiming to mitigate risks associated with the smartphone market[54].

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].

Investment Rating - The report maintains a "Buy" rating with a target price of HKD 45 per share, indicating a potential upside of 21.1% from the current price of HKD 37.2 [4][20]. Core Insights - The company's total revenue for H1 2024 reached RMB 11.25 billion, representing a year-on-year growth of 22.0%, with a gross margin of 21.5%, an increase of 7.4 percentage points compared to the previous year [7][33]. - The significant improvement in gross margin is attributed to the recovery in the smartphone market, product mix enhancements from acoustic, optical, and precision structural components, and operational efficiency gains [7][33]. - The acquisition of Premium Sound Solutions (PSS) has strengthened the company's automotive acoustic business, with substantial contributions from both domestic and international markets [11][33]. Financial Summary - Revenue projections for 2024 to 2026 are RMB 26.45 billion (+29.1%), RMB 29.93 billion (+13.2%), and RMB 33.86 billion (+13.1%) respectively [20][34]. - The net profit forecasts for the same period are RMB 1.69 billion (+128.6%), RMB 2.16 billion (+27.9%), and RMB 2.54 billion (+17.5%) respectively [20][34]. - The average net profit growth rate for the next two years is estimated at 23% [20][34]. Business Performance - The PSS-related business generated revenue of RMB 1.52 billion in H1 2024, with a gross margin of 25.0%, indicating that the automotive business is becoming a new growth engine for the company [13][33]. - The optical business achieved revenue of RMB 2.21 billion in H1 2024, a year-on-year increase of 24.9%, with significant improvements in gross margin [15][34]. - The company has successfully upgraded its optical technology, with a notable increase in the shipment of high-end plastic lenses [15][34].