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Nikkei Markets

AAC Technologies expects full-year sales growth of 10%-30%, exec says

HONG KONG (Nikkei Markets) -- Apple supplier AAC Technologies Holdings on Monday said it expects sales for the full year to rise 10% to 30%, downplaying concerns about trade tensions between the U.S. and China and a slowdown in smartphone demand.

"Our business is balanced on different type of smartphones, and won't be impacted by short-term trade policies," Managing Director Richard Mok said at a post-earnings press conference in Hong Kong. He added that AAC will be ready for all possibilities when it comes to trade relations.

Concerns the potential fallout from trade tensions between the U.S. and China will hurt smartphone suppliers have plagued the sector since the U.S. Commerce Department in April banned American companies from selling parts to Chinese telecommunication equipment maker ZTE.

"The recent trade frictions between U.S. and China have not caused much impact on its business operations," AAC said in a statement earlier Monday.

Separately, smartphone component makers in Asia have also come under pressure amid worries of slowing demand, especially after contract chipmaker Taiwan Semiconductor Manufacturing in April cut its full-year revenue target amid a softer market for smartphones.

The China-based acoustic component maker on Monday reported a 6% increase in net profit for the three months ended Mar. 31 to 1.13 billion yuan ($177.4 million). Revenue for the period rose 10% on-year to 4.64 billion yuan. FactSet's consensus estimate for March quarter profit was 1.24 billion yuan.

Its gross margin for the period came in at 38%. Mok said the company continues to target a gross margin of 40% for the second quarter ending in June.

Revenue from the company's acoustics business increased 27% year-on-year, it said. Its new design platform Super Linear Structure (SLS) is expected to continue to "penetrate in other upcoming flagship models during 2018," it added.

In 2017, the company posted revenue growth of 36% to 21.12 billion yuan.

--Carrie Chen

--Nikkei Markets is a real-time financial news service for South East Asia's markets published by Nikkei NewsRise Asia Pte Ltd, a Nikkei and NewsRise joint venture company. Nikkei Markets provides wide companies coverage in the region, including the Nikkei's Asia300 companies.

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