AAC Technologies Holdings, Inc. (2018) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AAC Technologies Holdings, Inc.

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Why is AAC Technologies Holdings, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 31.79%

Healthy long term growth as Net Sales has grown by an annual rate of 36.15% and Operating profit at 33.83%
Company has very low debt and has enough cash to service the debt requirements

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at HKD 13,083.22 MM
ROCE(HY) Highest at 10.64%
RAW MATERIAL COST(Y) Fallen by -24.94% (YoY)

With ROE of 18.31%, it has a Fair valuation with a 1.57 Price to Book Value

Over the past year, while the stock has generated a return of 13.85%, its profits have risen by 22% ; the PEG ratio of the company is 0.4

Consistent Returns over the last 3 years

Along with generating 13.85% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to AAC Technologies Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is AAC Technologies Holdings, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

AAC Technologies Holdings, Inc.

13.85%

13.00

44.53%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

36.15%

EBIT Growth (5y)

33.83%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

0.50

Tax Ratio

13.07%

Dividend Payout Ratio

14.83%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

31.79%

ROE (avg)

28.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.57

EV to EBIT

8.20

EV to EBITDA

8.20

EV to Capital Employed

1.51

EV to Sales

2.38

PEG Ratio

0.39

Dividend Yield

0.03%

ROCE (Latest)

18.39%

ROE (Latest)

18.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 13,083.22 MM

ROCE(HY)

Highest at 10.64%

RAW MATERIAL COST(Y)

Fallen by -24.94% (YoY

CASH AND EQV(HY)

Highest at HKD 9,606.98 MM

DEBT-EQUITY RATIO (HY)

Lowest at 9.05 %

DIVIDEND PER SHARE(HY)

Highest at HKD 3.61

NET SALES(Q)

Highest at HKD 20,251.48 MM

OPERATING PROFIT(Q)

Highest at HKD 3,663.91 MM

PRE-TAX PROFIT(Q)

Highest at HKD 2,013.04 MM

NET PROFIT(Q)

Highest at HKD 1,778.56 MM

EPS(Q)

Highest at HKD 1.55

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for AAC Technologies Holdings, Inc.

Operating Cash Flow

Highest at HKD 13,083.22 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Net Sales

Highest at HKD 20,251.48 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 3,663.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 2,013.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 1,778.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 1.55

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 9,606.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 9.05 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at HKD 3.61

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Raw Material Cost

Fallen by -24.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales