JP Morgan published a research report expressing a positive view on AAC TECH's (02018) solid outlook and long-term opportunities in artificial intelligence, robotics, and automotive sectors. The firm raised its target price for AAC TECH from HK$60 to HK$65, representing a projected price-to-earnings ratio of 22x for the second half of 2026 to first half of 2027, while maintaining an "overweight" rating.

AAC TECH (02018) management delivered a positive second half gross margin outlook during the analyst meeting, expected to be driven by increased production of new high-end products and continued improvement in the optical business. The company's second half revenue outlook also exceeded market expectations, benefiting from significant growth in new business segments including thermal management and automotive acoustics, as well as upgrades in existing product specifications.

The firm believes management's optimistic tone and guidance have alleviated investor concerns about the company's declining gross margins. AAC TECH management expressed confidence that full-year 2025 gross margins will still grow year-over-year, or at least remain flat compared to 2024's 22.1%. This implies that second half 2025 gross margins will exceed 23% (compared to 20.7% in the first half of 2025), with estimates suggesting that increased mass production of new smartphone haptic motor products in the second half will enhance the product mix (with gross margins expected to return to levels above 30%).