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- Proposed Final Dividends for 2016 of HK$1.17
- 23% YoY Increase of Total 2016 Dividends
- Backed by Strong Q4 earnings
- Quarter EPS Up 55% YoY |
HONG KONG, Mar 22, 2017 - (ACN Newswire) - AAC Technologies Holdings Inc. ("AAC Technologies" or "the Company"; Stock Code: 02018) has today announced its annual results for the year ended 31 December 2016, reporting revenue of RMB15,506.8 million and net profit of RMB4,025.7 million.
2016 Final Results Highlights (audited):
- Revenue grew by 32% to RMB15,506.8 million and net profit rose by 30% to RMB4,025.7 million year-on-year, both are new highs;
- Dual growth drivers comprising sales of dynamic components and non-acoustic solutions which grew by 29% and 56% respectively year-on-year, and both delivered gross margins of 40+%;
- Annualized return on average equity (ROE) was 31.6%, up from 30.4% last year;
- Further strengthened balance sheet with cash on hand of RMB3,864.4 million, and, relatively low gearing ratio and net gearing of 16.9% and 0.9% respectively; and
- A proposed total dividend of HK$1.47 per share for 2016, representing 23% growth over the previous year.
2016 was another good year for AAC Technologies. We managed to grow sales year-on-year for seven years consecutively and reached a new milestone with total revenue exceeding RMB15 billion or US$2 billion. These strong results come amid a more saturated smartphone market. We have gradually evolved from an acoustic components supplier to an integrated miniature technologies solutions provider through the accomplishment of significant initiatives which pave the way for our long-term success.
We delivered another set of solid results in 2016 with continued growth momentum from both the acoustic and non-acoustic segments. The Company posted revenue and net profit of RMB15,506.8 million and RMB4,025.7 million, representing a rise of 32% and 30% year-on-year respectively. Gross margin stayed at a high level of 41.5%. A major upgrade trend involving stereo sound and waterproof features drove dynamic components sales, rising by 29% year-on-year and accounting for 51% of total sales. RF Mechanical together with Haptics solutions, the two distinct contributors in the non-acoustic business, grew by 56% year-on-year and contributed 45% of total sales in 2016 compared with only 1% in 2013. The Company's continuous and effective cost controls drove operating expenses down to 12.4% from 14.2% in 2015. Full year net profit margin of 26.0% was achieved.
We ended the year with strong revenue and earnings growth in the fourth quarter. Q4 revenue rose 49% year-on-year or 36% quarter-on-quarter to RMB5,736.5 million. Net profit of RMB1,570.7 million was recorded, up 55% when compared with the same quarter last year and up 43% against the previous quarter. The strong growth from non-acoustic revenue was the main contributor. Non-acoustic business grew by 73% sequentially, contributing over 56% of total sales in the fourth quarter of 2016 and exceeding acoustic revenue for the first time. Again, we demonstrated strong execution on the production front and exceptional capabilities in delivering advanced solutions to meet customers' requirements. Q4 gross margin was 41.7% and effective control of operating expenses supported the net profit margin improvement to 27.4%.
The Company continues to generate strong earnings and cash flow, further enhancing its already strong financial position, with cash balance at year-end of RMB3,864.4 million. The Board proposed a final dividend of HK$1.17 (2015: HK$0.95) per share. Together with the interim dividend of HK$0.30 per share, the full year basic dividend will be HK$1.47 (2015: HK$1.20) per share, an increase of 23% year-on-year. The Company maintains a consistent dividend payout ratio of about 40% per year.
In 2017, some high-tier customers are preparing for specifications upgrades to differentiate themselves in the competitive environment, while others will follow closely to strengthen their market position. We therefore expect attractive growth potential from both the acoustic and non-acoustic segments. Apart from superior technological capabilities for leading development of the industry, AAC Technologies owns integrated and multi-platform solutions. Not only has it helped consolidate our position as a leading provider of the most advanced solutions, but it has also increased the penetration of our new solutions from RF Mechanical, Optics and Haptics. When we strive to improve performance and product design, our solutions can also extend from the current major smartphone arena to other new applications. For VR and AR, audio and optical solutions together with RF designed mechanics and haptic feedback will bring totally immersive experiences that stimulate the human senses of sight and sound in addition to touch. We are capable of shipping total solutions for enhancing user experiences in these new areas.
Thanks to our well-defined development strategies and R&D focused vision, we believe we are able to achieve continuous revenue growth and stable high profitability. Product expertise and innovation will enable us to deliver new technology platforms with rich user experience and firmly establish us to be the leader of integrated miniature technologies provider. We will continue in our efforts to adapt to new challenges and achieve sustainable long-term growth for all shareholders in an ever-evolving market.
Contact:
AAC Technologies Holdings Inc.
Connie Chin
Head of Investor Relations
Tel: 852 3470 0079
Email: ConnieChin@aactechnologies.com
Ricky Man
Investor Relations Manager
Tel: 852 3470 0076
Email: RickyMan@aactechnologies.com
For press enquiries:
Strategic Financial Relations Limited
Vicky Lee Tel: 852 2864 4834 Email: vicky.lee@sprg.com.hk
Cecilia Shum Tel: 852 2864 4890 Email: cecilia.shum@sprg.com.hk
Antonio Yu Tel: 852 2114 4319 Email: antonio.yu@sprg.com.hk
Topic: Press release summary
Source: AAC Technologies Holdings Inc.
Sectors: Electronics, Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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