New | Apple parts supplier AAC to step up production to boost revenue
Shenzhen company sees increased demand after posting 27pc first-half profit rise
AAC Technologies Holdings, a major supplier of miniature acoustic and non-acoustic components to Apple and major Chinese smartphone brands, is poised to drive revenue growth in the fourth quarter as it increases production to meet demand.
"We expect more new products to be launched in the second half of this year," chief executive Benjamin Pan Zhengmin said on Monday.
The company has declined to acknowledge it, but Apple's new iPhone 6s launch would anchor that anticipated growth in the quarter to December. It is widely speculated the iPhone 6s, along with a large-screen model, would be unveiled next month.
Jefferies equity analyst Ken Hui said in a report: "AAC should see stronger revenue growth in the fourth quarter, with upside in prices and [market] share in iPhone 6s vibrators."
AAC is also expected to benefit from the speaker box upgrade in the new iPhones and its adoption of four microphones, up from the previous three, to improve noise reduction.
But Hui said the third quarter should still see AAC struggling with low product output volume and a general slowdown in smartphone demand, particularly in China - the world's biggest market.
Its close competitors in the global micro electronic-acoustic components market include Knowles, GoerTek and Merry Electronics.
Shenzhen-based AAC's acoustic products include receivers, speakers and microphones, which are used on the iPhone, iPad and Apple Watch. It also has non-acoustic components, such as antennas and vibrators, used in those same three high-margin products.
Other customers prominently identified on AAC's website include Samsung Electronics, Huawei Technologies, Lenovo, Xiaomi, ZTE, Oppo, Gionee, Coolpad and Meizu.
AAC on Monday reported a 27 per cent rise in interim net profit to 1.25 billion yuan from 979.8 million yuan in the same period last year, on high non-acoustic component sales that made up more than 30 per cent of total turnover. Revenue grew 27 per cent to 4.71 billion yuan from 3.72 billion yuan.
The company's share price rose 2.26 per cent to close at HK$38.45.
