Citigroup: AAC Technologies' mid-term performance meets expectations, giving it a "buy" rating and a target price of HK$45.

Citibank published a research report stating that AAC Technologies' mid-term net profit was 876 million yuan, a 63% year-on-year increase, which roughly meets the bank and market expectations. In terms of business segments, all business revenues met the company's previous guidance, but only the optical business recorded a year-on-year increase in gross profit margin, mainly driven by the improvement of the gross profit margin of plastic lenses by over 10 percentage points. Citibank's target price for AAC Technologies is HK$45, equivalent to a forecasted price-earnings ratio of about 20 times this year, with a rating of "buy".