--- title: "In \"The Big Banks,\" Citigroup: AAC TECH's performance last year met expectations, lowering the target price to 50.4 yuan" type: "News" locale: "en" url: "https://longbridge.com/en/news/279894550.md" description: "Citi released a report stating that AAC TECH's performance in 2025 meets expectations, with net profit increasing by 40% to RMB 2.512 billion. It is expected that revenue growth in 2026 will not be lower than last year, with gross profit steadily improving. Due to the sluggish consumer electronics cycle, the target price-to-earnings ratio has been lowered to 18 times, and the target price has been reduced to HKD 50.4, but the \"high conviction outperform the market\" rating is maintained. The long-term growth outlook remains unchanged, driven by optical business and emerging technologies" datetime: "2026-03-20T06:20:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279894550.md) - [en](https://longbridge.com/en/news/279894550.md) - [zh-HK](https://longbridge.com/zh-HK/news/279894550.md) --- # In "The Big Banks," Citigroup: AAC TECH's performance last year met expectations, lowering the target price to 50.4 yuan Citi published a report stating that AAC Technologies (02018.HK) is expected to meet performance expectations for 2025, with net profit projected to grow by 40% year-on-year to RMB 2.512 billion, mainly due to fair value gains related to PSS, which is above market consensus. The group anticipates that revenue growth in 2026 will not be lower than last year's level, and gross profit will steadily improve. The company also expects limited impact from rising memory prices and announced the acquisition of liquid cooling company JYUN5DEI6. In light of the consumer electronics cycle being at a low point, Citi has lowered the target price-to-earnings ratio to 18 times and correspondingly reduced the target price from HKD 60.5 to HKD 50.4. However, it maintains a "high conviction outperform the market" recommendation rating. Citi believes that AAC's long-term growth prospects remain unchanged, driven by improved profitability in the optical business, iPhone thermal management business, AI/AR glasses, and new edge AI device business. The bank maintains its earnings forecast for the group in 2026 while raising next year's earnings estimate by 6% to RMB 3.053 billion. Due to short-term headwinds in the smartphone market, the target price valuation's price-to-earnings ratio has been lowered from 25 times to 18 times ### Related Stocks - [02018.HK](https://longbridge.com/en/quote/02018.HK.md) ## Related News & Research - [AI face is taking over — and driving plastic surgeons crazy](https://longbridge.com/en/news/286641783.md) - [BluSky AI Inc. Announces Launch of Regulation A+ Offering to Accelerate U.S. AI Infrastructure Expansion | BSAI Stock News](https://longbridge.com/en/news/286429851.md) - [These 3 engineering roles are now converging, says EY's AI leader](https://longbridge.com/en/news/286538922.md) - [AI coders are carrying half-open laptops through airports, offices, and ice rinks](https://longbridge.com/en/news/286066442.md) - [](https://longbridge.com/en/news/286300823.md)