AAC Technologies Holdings Inc (02018) rose more than 7%, with a gain of 6.85% at the time of writing to HK$36.20, and a turnover of HK$215 million. According to sources, Apple's first foldable phone is expected to be released as scheduled later this year during the usual iPhone launch period, dispelling concerns about significant production issues. AAC TECH is a key supplier to Apple, providing products such as speakers, horizontal linear actuators, MEMS microphones, and thermal solutions. Separately, a UBS report indicated that AAC TECH is collaborating with OpenAI and Apple on AI desktop devices, supplying motors and microphones for mini-robot products. The average selling price and potential product value for these items are significantly higher than those for smartphone-related products. Furthermore, the humanoid robot business has secured early partnerships with clients such as Xiaomi and Linker Robot. UBS forecasts that the company's automotive acoustics business will account for 13% of revenue by 2026, becoming a stable growth driver. Additionally, AAC TECH supplies optical waveguide components for several AI glasses from Google and Samsung, with related business now entering the mass production ramp-up phase. In thermal management, the company is expected to enter the supply chain for foldable iPhones with the iPhone 18 series, and could potentially expand into the iPad and MacBook product lines by 2027. In server liquid cooling, through a recent equity acquisition in Yuandi Tech, AAC TECH has entered the server liquid cooling sector, providing cold plates and full liquid cooling systems for large-scale data center clients in China. UBS estimates that the global market for direct liquid cooling in data centers will see a compound annual growth rate of 51% from 2025 to 2030, indicating substantial industry potential. CMB International noted that AAC TECH is currently in a phase of simultaneous expansion across multiple new growth areas, particularly in automotive audio systems, thermal management modules, AR optical waveguides, and XR and AI terminal hardware, all of which are expected to be key drivers of the company's performance growth over the next two years. Moreover, through acquisitions such as Hebei First Light (automotive PSS), Dispelix (AR waveguides), and Yuandi (AI server liquid cooling), the company is accelerating its presence in high-growth non-smartphone segments, further strengthening its medium- to long-term growth prospects.
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