Goldman Sachs has issued a research report reaffirming a "Buy" rating on AAC TECH (02018) with a target price of HK$68.6, based on a projected price-to-earnings ratio of 25.6 times for the current year. In the second half of last year, the gross margin for mobile phone cameras continued to rise to 12.6%, benefiting from product mix optimization and customer upgrades to higher-end solutions. This contributed to an increase in the overall average gross margin to 23% in H2. The report noted that AAC TECH's revenue in the second half of last year grew 15% year-over-year to RMB 18.5 billion, largely in line with both Goldman Sachs' and market consensus expectations. This growth was primarily driven by the sensor and semiconductor business, as well as the precision machinery business, which recorded year-over-year growth rates of 151% and 18%, respectively, in H2. The company stated that it is collaborating with customers to develop core motor components for its first AI hardware device. The operating expense ratio improved to 13.2%, surpassing Goldman Sachs' and market consensus estimates of 13.4% and 13.7%. This improvement led to a 23% year-over-year increase in operating profit and a 30% rise in net profit.