CICC has released a research report stating that AAC TECH (02018)'s new business performance has exceeded expectations. The firm maintains its 2026 net profit attributable to shareholders forecast at RMB 2.68 billion and raises its 2027 forecast by 7% to RMB 3.43 billion. At the current share price, the stock trades at 15x and 12x P/E ratios for 2026 and 2027, respectively.
Reiterating its Outperform rating, CICC remains optimistic about the company's long-term growth trajectory. The investment bank has lifted its target price by 6% to HK$50, corresponding to 19x and 15x P/E for 2026 and 2027, implying an upside potential of 25%.
Profit growth in 1H26: Net profit attributable to shareholders reaches RMB 900 million, up 3% year-on-year
The company recorded revenue of RMB 14.51 billion in 1H26, up 9% year-on-year, with net profit attributable to shareholders of RMB 900 million, a 3% increase. After excluding fair value gains and losses, net profit grew 37% year-on-year. CICC attributes the 1H26 profit growth to two key drivers: first, thermal management revenue surged approximately 400% year-on-year, boosting the precision components and thermal management segment revenue by 12.5% with gross margin expanding 4.1 percentage points; second, robust Apple iPhone sales drove acoustics and electromagnetic transmission revenue up 14.2%.
Thermal management continues to deliver strong results, with liquid cooling positioning for AI computing opportunities
In 1H26, the company's thermal management revenue grew approximately 400% year-on-year, primarily driven by surging demand for high-performance ultra-thin vapor chambers. With major customers expected to adopt vapor chamber technology in lower-tier models and upgrade specifications in the second half, CICC believes the company is well-positioned to maintain its leading supply status and deliver on its performance commitments. In the liquid cooling segment, according to company announcements, the group's subsidiary Yuandi Technology has commenced batch delivery of 2.2MW/2.6MW centralized liquid cooling CDUs, achieving monthly production capacity exceeding 600 units and ranking in the industry's first tier. Quick connectors have entered mass production, and certification for liquid cooling plates with leading CPU companies is progressing smoothly through white paper validation. CICC is optimistic about the dual-engine growth driven by both thermal management and liquid cooling.
Robotics/XR/optical communications expanding across multiple fronts, building a new growth engine
According to company announcements, in robotics, the company's motors and modules have secured project designations from multiple global top-tier customers, with some projects already in mass production. In AR, the company has integrated the Dispelix and light engine teams, achieving mass production of etched optical waveguides and securing multiple project designations. In optical communications, WLG technology, with its advantages in high precision, stability, and mass production efficiency, lays the foundation for CPO MLA and V-groove production. The company is currently undergoing factory audits and sample deliveries with leading overseas optical communication companies.
Deep integration with North American key customer positions company to benefit from category expansion
CICC anticipates that 2027 could be a major product launch year for the key customer. With long-term collaboration across acoustics, motors, and thermal management products, the company is well-positioned to fully benefit from both growth in existing product lines and incremental contributions from new categories.