Core Viewpoint - AAC Technologies (02018) has seen a stock increase of over 3%, currently trading at 41.25 HKD with a transaction volume of 83.97 million HKD, following the announcement of a proposed acquisition of Acoustics Solutions International B.V. [1] Group 1: Acquisition Details - The second tranche of the acquisition is set to be completed by July 31, 2025, with a total purchase price of 128.6 million USD, including interest [1] - Upon completion of the second tranche, the target company will become a wholly-owned subsidiary of AAC Technologies [1] Group 2: Business Performance - Following the acquisition of Premium Sound Solutions (PSS) last year, AAC Technologies' automotive acoustics business has rapidly developed, generating revenue of 3.52 billion CNY with a gross margin of 24.8% [1] - PSS's automotive speakers have captured significant market share among leading automotive brands in Europe and the US, and AAC Technologies has successfully supplied to domestic new energy vehicle companies such as Li Auto, Xiaomi, Geely, and XPeng [1] - PSS has a 15%-20% global market share in automotive acoustics, with a higher share in the mid-to-high-end market segment [2]

Core Viewpoint - AAC Technologies (瑞声科技) has seen a stock price increase of over 3%, currently trading at HKD 41.25, following the announcement of its acquisition of Acoustics Solutions International B.V. [1] Group 1: Acquisition Details - The second tranche of the acquisition is set to be completed by July 31, 2025, with a total purchase price of USD 128.6 million, including interest [1] - After the completion of the second tranche, the target company will become a wholly-owned subsidiary of AAC Technologies [1] Group 2: Business Performance - The acquisition of Premium Sound Solutions (PSS) has significantly boosted AAC Technologies' automotive acoustics business, generating revenue of CNY 3.52 billion with a gross margin of 24.8% [1] - PSS's automotive speakers have captured the market among leading automotive brands in Europe and the US, and the company has successfully supplied to domestic new energy vehicle manufacturers such as Li Auto, Xiaomi, Geely, and XPeng [1] Group 3: Company Background - PSS, headquartered in Belgium, is a well-established automotive acoustics company with 50 years of history and a global manufacturing presence [2] - The company holds a market share of 15%-20% globally, with a higher share in the mid-to-high-end market segment [2]

Core Viewpoint - AAC Technologies has completed the acquisition of the second batch of shares in Premium Sound Solutions (PSS), making PSS an indirect wholly-owned subsidiary of AAC Technologies [1] Group 1: Acquisition and Market Impact - AAC Technologies acquired 80% of PSS in February last year, leading to a steady increase in its global automotive market share and the establishment of a vertically integrated solution encompassing speakers, amplifiers, algorithms, and tuning services [3] - The automotive acoustics business of AAC Technologies has seen rapid growth, with revenue reaching 3.52 billion yuan and a gross margin of 24.8% [3] - PSS's automotive speakers have captured significant market share among top-tier automotive manufacturers in Europe and the US, and after the acquisition, AAC Technologies has successfully supplied to domestic new energy vehicle companies such as Li Auto, Xiaomi, Geely, and XPeng [3] Group 2: Ratings and Market Position - Moody's has upgraded the rating outlook for AAC Technologies from "stable" to "positive," citing the ongoing synergy effects from the acquisition of PSS and improvements in the company's diversified business structure [3] - CLSA's latest research report indicates that AAC Technologies is the sole supplier of the Xiaomi SU7 smart cockpit speakers, and the Xiaomi YU7 series smart cockpit speakers are co-developed with AAC Technologies, with all units supplied by AAC Technologies [3] Group 3: PSS Company Profile - PSS, headquartered in Belgium, is a well-established European automotive acoustics company with 50 years of history and a diversified global manufacturing layout [4] - PSS serves mainstream automotive brands, including Audi, BMW, Mercedes-Benz, Land Rover, and Buick, with a global market share of 15%-20%, and a higher proportion in the mid-to-high-end market [4]

Group 1 - CLSA's top stock picks include AAC Technologies (瑞声科技), Xiaomi, and SMIC [1] - The upcoming iPhone 17 Pro series is expected to feature a vapor chamber for enhanced thermal performance, with AAC Technologies supplying the thermal module [1] - AAC Technologies' optical business is projected to grow, contributing to a forecasted revenue of RMB 27.33 billion for 2024, a 33.8% year-on-year increase [1] Group 2 - AAC Technologies completed the acquisition of 80% of high-end audio system supplier "PSS" last February, leading to a revenue of RMB 3.52 billion from automotive and consumer acoustics products in 2024 [2] - The thermal business of AAC Technologies is expected to generate RMB 326 million in revenue for 2024, reflecting a 40.1% year-on-year growth [2] - AAC Technologies has become a major supplier of thermal modules for flagship smartphones in China, holding over 50% market share [2]