CLSA has issued a research report indicating that AAC TECH (02018) recorded a 2.9% year-on-year increase in net profit for the first half of the year, reaching RMB 901 million, while adjusted net profit surged 37.4% year-on-year. The company projects double-digit revenue growth for fiscal year 2026, accompanied by a steady improvement in gross margins.

According to the brokerage, AAC TECH has made notable advancements in its liquid cooling and optical businesses. Despite prevailing industry headwinds, the company's full-year guidance for this year remains solid. CLSA highlighted that the progress in liquid cooling and optical segments is expected to contribute more significantly starting next year.

Maintaining its valuation multiple for AAC TECH, CLSA has revised its earnings forecasts for the 2026-2028 period upward by 3% to 13%. Consequently, the target price has been raised from HK$50.4 to HK$54.4, reflecting a price-to-earnings ratio of 18 times for the current and upcoming fiscal years. The firm has also reaffirmed its "High Conviction Outperform" rating on the stock.