AAC Technologies (2018) H2 2024 earnings summary

Executive summary

• Revenue reached a record RMB 27.33 billion in 2024, up 33.8% year-on-year, driven by strong optics, precision mechanics, and automotive acoustics, with the PSS acquisition contributing RMB 3.52 billion.

• Net profit surged 142.7% year-on-year to RMB 1.80 billion, reflecting significant profitability improvement and optimized product mix.

• Gross margin improved by 5.2 percentage points to 22.1%, attributed to lean management, technology innovation, and product mix optimization.

• Operating cash inflow rose 12.3% to RMB 5.20 billion, with free cash flow at RMB 2.95 billion and inventory turnover days reduced to 60 from 80.

• Automotive acoustics revenue grew over 600% to RMB 3.52 billion, expanding business scope and establishing a second growth engine.

Financial highlights

• Revenue: RMB 27.33 billion (+33.8% YoY); Net profit: RMB 1.80 billion (+142.7% YoY); EBITDA: RMB 5.55 billion (+32.8% YoY).

• Gross margin: 22.1% (+5.2ppts YoY); Gross profit: RMB 6.04 billion (+75.0% YoY).

• Operating cash inflow: RMB 5.20 billion (+12.3% YoY); Free cash flow: RMB 2.95 billion.

• CapEx: RMB 2.33 billion; Net gearing ratio: 3.8%; Cash and equivalents: RMB 7.54 billion.

• Basic EPS: RMB 1.53 (+142.9% YoY); Final dividend: HK$0.24/share, payout ratio 15%.

Outlook and guidance

• 2025 revenue guidance is 10–15% growth, with double-digit growth expected across all segments and automotive acoustics projected to match or exceed consumer electronics within two years.

• Precision mechanics expected to grow 18–20%, optics to see high double-digit growth, and microphones 30–35%.

• Focus on leveraging AI, NEVs, AR/VR, and robotics for diversified growth and continued investment in R&D and operational efficiency.

• CapEx to remain steady at RMB 2.1–2.3 billion in 2024 and 2025, with prudent financial management supporting long-term shareholder returns.

• Caution on forward-looking statements due to market uncertainties.