Will the projected >18% revenue growth and higher gross profit margin be reflected in the upcoming FY2025 earnings guidance and affect the forward P/E valuation of AAC Technologies?

Fundamentals & FY‑2025 guidance

AAC Technologies has already demonstrated the 18 %‑plus top‑line lift in the first half of 2025 (RMB 13.32 bn, +18.4% YoY) and a 63 % surge in net profit, which implies a markedly expanding gross‑profit margin versus 2024. Management’s interim release signals that the growth trajectory is not a one‑off; the “over 18 % revenue growth” forecast for the full year most likely translates into a FY2025 net‑income target of roughly RMB 5.5–6.0 bn (assuming the second half repeats the first‑half profit‑growth pattern). Because gross‑margin expansion is already baked into the half‑year results, the forward‑looking FY2025 guidance will probably embed a modest but meaningful margin uplift—enough to sustain a higher earnings‑per‑share (EPS) outlook than the current consensus.

Forward P/E impact

At the moment the market prices AAC at a forward P/E of ~15× based on FY2024 earnings. If the FY2025 earnings guidance moves to the 5.5–6.0 bn net‑profit range, FY2025 EPS will rise by ~30‑35 % year‑over‑year. Holding the share price constant, the forward P/E would compress to roughly 12×–13×, indicating a valuation upgrade. In practice, the market will likely price‑in the higher margin and stronger top‑line, pushing the stock toward a 2‑3 % upside on a breakout if it remains in the current price zone (technical support around HKD 15.5).

Trading take‑away

1. Short‑term: With the half‑year results already beating expectations and technicals in a consolidating basin, a bullish breakout above the June‑July resistance (HKD 16.5) could capture the upside of the forward‑P/E compression.

2. Medium‑term: If AAC issues an FY2025 earnings guidance that confirms the >18 % revenue growth and margin expansion, the forward P/E will contract, justifying a price target of HKD 18–19 (≈+10‑12 % from current levels).

3. Risk: Any downward revision of the second‑half growth rate or a slowdown in the high‑value component market could neutralise the margin boost and re‑inflate the forward P/E. Maintain a stop‑loss around 5 % below the breakout level (HKD 15.5).

Bottom line: The 18 %+ revenue growth and higher gross‑profit margin are very likely to be baked into FY2025 earnings guidance, delivering a healthier EPS outlook. This will compress the forward P/E, creating a modest valuation upside and a bullish trading bias for AAC Technologies in the coming months.