AAC Technologies Holdings Inc. (2018.HK) stock analysis

In our weekly check, AAC Technologies Holdings Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About AAC Technologies Holdings Inc.

AAC Technologies Holdings Inc. is a Technology company (Hardware, Equipment & Parts) based in China, listed on HKSE as 2018.HK.

What our checks show for 2018.HK

Red flags

• Operating profit does not cover the interest bill (0.9x): interest is paid from cash or new debt.
• The gross margin fell by 2.7 points, to 22.1%: costs are rising faster than prices.
• The stock has fallen as much as 94% from a peak. Would you have held through that?

Warning signs

• The net margin is only 7.9%: little room if costs rise.
• The price swings a lot: 43.9% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Beta 1.38: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 7.7%.

Strengths

• Net debt is only 0.4x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 2.86x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 21.6% a year over the next years.
• Revenue grew 15.5% a year over the last 3 years.
• Earnings per share grew 46.7% a year over the last 3 years.
• Net profit grew 45.2% a year over the last 3 years.

Similar companies

COHR · 0285.HK · KEYS · GRMN · CLS · FLEX

Questions

What grade does AAC Technologies Holdings Inc. (2018.HK) have?

In our weekly check, AAC Technologies Holdings Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2018.HK stock?

This week's biggest flags for AAC Technologies Holdings Inc.: Weak interest cover, Gross margin falling, Deep past fall. In total 8 of 25 checks show a warning or a red flag.

What does AAC Technologies Holdings Inc. do?

AAC Technologies Holdings Inc. is a Technology company (Hardware, Equipment & Parts) based in China, listed on HKSE as 2018.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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