Premium market propels AAC earnings

Cici Cao

AAC Technologies's (2018) 2024 net profit surged 140 percent to 1.8 billion yuan (HK$1.93 billion) over a year prior amid record revenue and surging gross profit.

The Apple supplier raised its final dividend by 140 percent to 24 HK cents.

Revenue rose by 34 percent to a record 27.33 billion yuan, AAC said in a filing, adding that the growth was mainly driven by an additional 3.49 billion yuan in revenue from its premium sound solutions-related business as well as an increase of 3.41 billion yuan from existing business.

Gross profit surged 75 percent year-on-year to 6.04 billion yuan, bolstered by PSS-related business while its gross profit margin rose 5.2 percentage points to at 22.1 percent.

Acoustics business revenue rose 9.5 percent to 8.21 billion yuan last year, up 9.5 percent, driven by the recovery in downstream demand and increased market share among key customers, as well as the integration of high-end acoustic platforms into more major smartphone models.

Its optics business garnered 5 billion yuan in revenue, up 38 percent year-on-year.

The company said 2024 marked a year of significant progress in its core businesses, adding that it will embrace opportunities in emerging such trends as artificial intelligence and new energy vehicles.

Shares of AAC, however, fell 3.3 percent to HK$ 52.05 yesterday.