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<Research>G Sachs Keeps Buy on AAC TECH; 2H25 Operating Expense Ratio Improvement Beats
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AAC TECH (02018.HK)'s 2H25 handset camera gross margin continued to rise to 12.6% on the strength of an optimized product mix and customer upgrades to high-end solutions, leading to an increase in the comprehensive average gross margin to 23% in 2H25, according to a Goldman Sachs report.

The company's operating expense ratio also improved to 13.2%, better than Goldman Sachs' and the market's estimates of 13.4% and 13.7%, respectively, leading to a 23% YoY surge in operating profit and a 30% YoY spike in net profit.

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Goldman Sachs has given AAC TECH a target price of HKD68.6 and kept the rating at Buy.
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