Goldman Sachs has a more optimistic view on AAC TECH (02018.HK) due to the introduction of new components, specifically vapor chambers, and a promising outlook for the iPhone. The broker raised its earnings estimations for 2025-2027 by 1%, 4%, and 6% respectively, primarily reflecting increased revenue forecasts from vapor chambers as they are adopted in more phone models and as phone specifications improve. Additionally, Goldman Sachs noted an improved product mix, better production yield, and benefits from scale production, which contribute to a positive outlook on profit margin expansion. Consequently, the target price was increased from $63.6 to $68.6, maintaining a Buy rating.
