HK Stock Market Move | AAC TECH (02018) rises again by more than 3%, institutions point to improvement in the company's gross profit margin for each production line, and the continuous upgrade of optical technology.

AAC TECH (02018) rose by over 3%, as of the deadline, it increased by 3.35% to 38.55 Hong Kong dollars, with a turnover of 45.0337 million Hong Kong dollars. Open Source Securities released a research report stating that considering the trend of acoustic upgrades, the increase in penetration rate of master-level speakers, the slowing industry competition trend since 2023H2, and the volume expansion of new business sectors such as hinge, heat dissipation, and mobile phone motor shell, as well as the acquisition of PSS accelerating the expansion of car audio business, the company is expected to have a net profit attributable to the mother of 16.7/21.7/25.7 billion yuan in 2024-2026. Considering the company's performance reaching a turning point, improvement in gross profit margin of various product lines, and the hardware innovation upgrade brought by the trend of AI smartphones, the company is expected to benefit from the leading domestic consumer electronics comprehensive service provider, with improvements in optics, acoustics, and structural components. China Post Securities pointed out that in the first half of 2024, the company's optical business achieved revenue of 2.21 billion yuan, a year-on-year increase of 24.9%, mainly due to the recovery in demand in the smartphone optical industry and higher shipment volume and price improvement brought by the group's increased market share in the mid-to-high-end market. The gross profit margin improved to 4.7%, a significant increase of 21.7 percentage points compared with the same period last year, with the gross profit margin of plastic lenses increasing by 27.4 percentage points year-on-year to 16.7%, and the gross profit margin of optical modules increasing by 11.8 percentage points year-on-year to 5.7%. During the reporting period, the group's optical technology continued to upgrade, and the product structure was continuously optimized.