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AAC Technologies, an Apple supplier, slid as much as 4% to hit a low of HK$16.62, after forecasting up to 65% drop in H1 profit
AAC Technologies had issued a profit warning, anticipating the consolidated profit for the six months ended June 30 to decline to a range of 122 million – 157 million yuan, representing a decline of about 55% – 65% from a year earlier.
The lower profit is attributable to delays in efficiency improvements resulting from a company reorganization, alongside the lower demand in the smartphone market due to uncertainties in the economy, and the unfavorable impact of the changes in the investment holding company’s product portfolio.
The company vows to take more action to improve efficiency and control costs in the second half of the year.
AAC’s profit warning came after said Sunny Optical Technology, another supplier to Apple, said its first-half net profit attributable to shareholders is expected to tumble by 65% – 70% from a year earlier to about 407.4 – 475.3 million yuan, citing sluggish demand in the smartphone market, downgraded camera configurations of smartphones as well as fierce industry competitions. Read more …
