AAC Technologies reported 3Q11 EPS of Rmb0.21, below the consensus on account of FX losses. GPM edged up 0.2ppt to 44% while OPM was down 0.4ppt to 27.7% due to raised R&D expenses for new projects and automation.
GPM in 4Q11 would further go up due to the improving product mix and higher automated production. AAC Tech also hopes to optimize cost structure by rising automation in long run.
Management guided the 4Q sales growth will be 10% qoq. For 2012, the sales growth drivers will be the increase of market share of key customer such as Samsung and Huawei/ZTE in China. Key component products, including speaker boxes and MEMS microphones, should continue to grow, along with increasing tablet contribution in 2012. Lens shipments will be kick-off in 4Q11. However, the new products such as antennas, optical lens, and ceramic-related products should only contribute a small part of business in 2012 continuously.