We estimate AAC to deliver strong revenue/net profit growth of 24%/66% YoY in 1H25E, driven by 1) Acoustics/automotive PSS: Android master-SLS/combo speaker upgrade, AI glasses orders and domestic client wins in auto acoustics; 2) Electromagnetic drive: haptics spec upgrade and new product ramp-up; 3) Precision mechanics: Android foldable phone casing, VC in AI phones and hinge order wins; 4) Optics: share gain and spec upgrade in handset lens (7P/WLG) and HCM (OIS/periscope). Overall, we raise FY25-27E EPS forecast by 8-12% mainly to reflect stronger optics/PM business and better profitability in optics, and our new SOTP-based TP of HK$63.54 implies 25.3x FY25E P/E. Maintain BUY.
　　1H25 preview: expect 24%/66% revenue/net profit YoY growth. We
　　expect AAC to report in-line revenue/net profit in 1H25 (+24%/66% YoY), backed by acoustics/haptics spec upgrade from major US clients, order ramp-up for thermal products, client wins in automotive acoustics and improving profitability of optics business. By segment, we estimate 1) acoustics/auto PSS to grow 10%/8% YoY on spec upgrade and client wins, 2) ED segment to grow 49% YoY thanks to upgrade of side-button modules, 3) PM segment to grow 36% YoY on Android foldable casing/hinges and new thermal VC products, 4) optics segment to grow 22% YoY thanks to share gains in high-end lens (7P/WLG) and HCM (OIS/periscope).
　　Structural growth opportunities in AI/foldable/ultra-thin phones, AI glasses, auto acoustics/optics and robotics. Looking into 2H25/2026,
　　leveraging technology leadership across multiple product lines, we believe AAC is well-positioned to capture new opportunities and spec upgrade trends in AI/foldable/ultrathin phones (optics/VC/MEMS/hinges), AI glasses (MEMS/optics/haptics), automotive acoustics/optics and robotics (sensors/ acoustics/optics/actuators).
　　Valuation/Key risks. We lift our FY25-27E EPS forecast by 8-12% to factor in stronger optics/PM segments and better margins in optics. Our new SOTP-based TP of HK$63.54 implies 25.3x FY25E P/E. Trading at 16.1x/13.4x FY25/26E P/E, the stock is attractive, vs 49%/20% FY25/26E EPS growth. Reiterate BUY. Upcoming catalysts include product launches (AI/foldable/ultra-thin phones/AI glasses), robotics orders and optics margin expansion.