Shares of AAC Technologies slumped 13 percent despite a huge profit gain

Shares in AAC Technologies (2018) plunged by 13.6 percent despite posting a 63.1 percent surge in first-half net profit. 

Profit for the period was 876 million yuan, up by 63.1 percent from a year ago, mainly attributable to a substantial enhancement in the profitability of the optics business, besides growth in the precision mechanics business.

The Apple supplier did not declare an interim dividend, the same as last year. 

Revenue in the six months grew by 18.4 percent to 13.32 billion yuan, mainly driven by continued market share gains for its core products. 

The gross profit margin stood at 20.7 percent, slightly lowered by 0.8 percentage points, primarily due to changes in the product mix.