"AAC Acoustic Holdings Inc." has changed to "AAC Technologies Holdings Inc."   

Current PostionHomeAbout AACLatest NewsAAC Records Historical Highs in Q3 and 9 months YTD 2016 Results

AAC Records Historical Highs in Q3 and 9 months YTD 2016 Results

 

AAC Records Historical Highs in Q3 and 9 months YTD 2016 Results

* * * *

Q3 EPS Increases 50% QoQ and 29% YoY

* * * *

Strong Growth across Core Businesses

On a Balanced Customer Portfolio

 

 

(14 November 2016, Hong Kong) AAC Technologies Holdings Inc. (“AAC Technologies” or “the Company”; Stock Code: 02018) has today announced its unaudited results for the nine months ended 30 September 2016, reporting revenue of RMB 9,770 million and net profit of RMB 2,455 million.

 

      Record nine months revenue, up 24% year-on-year, with solid gross profit margin of 41.4%;

      Strong growth across core business lines in the nine months of 2016. On a year-on-year basis, dynamic components rose 30% and delivered 57% of total sales, whereas non-acoustic solutions grew 34%, accounting for 38% of total sales;

      Achieved a more balanced customer portfolio. Sales revenue from Chinese customers contributed over 40% of total sales in the nine months of 2016;

      Net profit margin achieved 25.1% with EPS up 17% year-on-year; and

      Annualized ROE: 27.5% vs 10-year average of 27.0%.

 

(RMB Million)

9M

2016

9M 2015

YoY%

 

3Q

2016

2Q

2016

3Q

2015

QoQ%

YoY%

Revenue

9,770

7,891

+24%

 

4,207

3,019

3,184

+39%

+32%

Gross Profit

4,048

3,278

+24%

 

1,759

1,258

1,324

+40%

+33%

Gross Profit Margin

41.4%

41.5%

-0.1pt

 

41.8%

41.7%

41.6%

+0.1pt

+0.2pt

Net Profit

2,455

2,096

+17%

 

1,100

736

851

+50%

+29%

Net Profit Margin

25.1%

26.6%

-1.5pt

 

26.2%

24.4%

26.7%

+1.8pt

-0.5pt

Basic EPS (RMB)

2.00

1.71

+17%

 

0.90

0.60

0.69

+50%

+29%

Financial Highlights for the Nine Months ended 30 September 2016 (unaudited):

 

AAC Technologies recorded historical highs in both quarterly sales and earnings for the three months ended 30 September 2016. The Company reported 3Q 2016 net profit of RMB1,100.2 million, or RMB0.9 per share, representing a quarter-on-quarter increase of 50%. Revenue was up 39% sequentially to RMB4,206.7 million. A new quest for upgrading audio quality of smart devices drove dynamic components sales up by 25% quarter-on-quarter, contributing 51% of total sales. The non-acoustic segment enjoyed continued growth momentum. Sales grew by 63% against 2Q 2016, accounting for 45% of total sales. Overall gross profit margin improved to 41.8%. Through better control of operating expenses, net profit margin improved 180 basis points to 26.2% compared with the previous quarter. These 3Q results reflected strong performance across the Group and the sustained progress of effective cost control. The Group’s strategy, executed over the course of 2016, contributed these results.

 

During the nine months of 2016, revenue and net profit rose 24% and 17% year-on-year to RMB9,770.3 million and RMB2,455.0 million respectively due to solid growth attained across all major business lines. Sales of dynamic components increased by 30% year-on-year, contributing 57% of total sales. Non-acoustic segment achieved 34% year-on-year sales growth, accounting for 38% of total sales. Overall gross profit margin stabilised at 41.4%, achieved from a new business mix that included important new product lines. The Company achieved a more balanced customer portfolio and generated robust sales from Chinese customers, up 57% year-on-year, and constituting over 40% of total sales. The Company continues to invest in R&D and such expenses increased to 8.4% of sales. Net profit margin achieved in the nine months was 25.1% and basic earnings per share was up 17%. Continued momentum in non-acoustic solutions coupled with the leading technology position of the acoustic business delivered these strong results and a 27.5% annualized return on equity for the nine months of 2016.

 

Looking ahead, 4Q 2016 is the traditional peak season, driven by higher demand from the Company’s diverse customer base. Starting in 2017, a major trend expected to benefit the Company would be an upgrade of acoustics with increasing adoption of speaker boxes, stereo solutions and waterproof features. Meanwhile, consistent enhancement of RF Mechanical, haptics and optics solutions should enable the Company to penetrate new areas more effectively. AAC Technologies will capture the promising market opportunities by bolstering R&D, offering a wider range of innovative products and solutions under our multi-platform business model.