AAC Technologies Holdings Inc
02018: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$61.00 | Pjhq | Xqzgqmfz |
AAC Likely to Recover its Acoustics and Haptics Profits, Other Ventures Outlook Less Exciting
Business Strategy and Outlook
Over the past decade, AAC has benefited from the rise of Apple, which accounts for over 30% of the firm’s sales, by supplying acoustics and haptics component to the latter. However, AAC has had to endure a slowdown in the adoption of new speaker and touch feedback technology by Apple and intensifying competition within Apple’s supply chain. As a result, its return on invested capital declined to 4.5% in 2020 from 38.9% in 2010.