Goldman Sachs maintains its "buy" rating on AAC Technologies (02018) and raises its target price to HKD 47.

Goldman Sachs released a research report stating that based on a 2025 P/E ratio of 22.6 times, the target price of AAC TECH (02018) has been raised by 11.6% to 47 Hong Kong dollars from 42.1 Hong Kong dollars, maintaining a "buy" rating. The bank has raised the profit forecast for 2024-25 by 5% and 6%. The bank predicts that the group's revenue in the second half of 2024 will increase by 42% year-on-year, or 33% year-on-year in 2024, mainly due to the growth of mobile lenses, the increase in 6P lens contributions, and the growth in PSS automotive business revenue. It is expected that the gross profit margin in the second half of 2024 will increase to 22.6%, and the operating profit margin (OPM) will increase from 7% in 2024 to 10% in 2027. The gross margin forecast for 2024 is also increased by 0.4 percentage points, as the gross margin in the optical business is higher, the product mix has been upgraded, and the utilization rate is high.