Goldman Sachs: Maintains "buy" rating on AAC TECH (02018) with a target price raised to HKD 22.7.

Goldman Sachs has released a research report stating that it maintains a "buy" rating on AAC TECH (02018) and expects the company's revenue and gross profit margin to continue recovering in the second half of the year. The report predicts that the contribution of mobile phone lens revenue to the overall income will reach 6%, 9%, and 15% for the years 2023 to 2025 respectively. Additionally, the report raises the company's net profit forecast for next year by 1% and increases the target price by 11% to HKD 22.7. The bank stated that with the recovery of the smartphone lens market, the increase in shipments and pixel combinations of AAC TECH's smartphone lenses will have a positive impact. It is expected that the contribution of lens deliveries with more than 6 plastic lenses (6P) will increase to 17% and 21% for this year and next year respectively. Furthermore, the demand for mid-range and high-end lens models has strengthened during the Double 11 promotion, and as of the first 12 days, smartphone deliveries have increased by 10% year-on-year, with the average selling price of the top 10 models reaching $550. These factors are expected to positively impact the company's increase in lens shipments and pixel combinations.