AAC upbeat over record earnings, upgrades in smart devices

Chinese micro-electronics component supplier to Apple posts its highest ever quarterly net profit and revenue

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AAC, which supplies audio components to Apple, reported record profit of 1.10 billion yuan (HK$1.25 billion) in the third quarter, up from 851 million yuan in the same period last year. Photo: AP

Published: 4:45pm, 14 Nov 2016Updated: 10:50pm, 14 Nov 2016

AAC Technologies Holdings, the world’s top supplier of miniature audio components for consumer electronics products, expects to benefit from a major upgrade cycle in acoustics in mobile devices from next year, after posting record third-quarter revenue and profit.

In a filing to the Hong Kong stock exchange on Monday, AAC said it was aiming to capture that opportunity “by bolstering research and development, and offering a wider range of innovative products”.

Shenzhen-based AAC reported a 29 per cent increase in net profit in the third quarter to a record 1.1 billion yuan (HK$1.25 billion), up from 851 million yuan in the same period last year, on the back of solid growth across all its major business lines.

That was slightly ahead of the 1.04 billion yuan consensus among market analysts surveyed by Bloomberg.

Total revenue jumped 32 per cent to a historic high of 4.21 billion yuan from 3.18 billion yuan a year earlier, surpassing the consensus estimate of 4.04 billion yuan.

Shares of AAC rose to HK$70.15 in early afternoon trading after the firm announced its results at noon. It slipped to HK$68.80 at the close of trading.

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