Investing.com - Shares of Hong Kong-listed AAC Technologies Holdings Inc (HK:2018) slumped more than 13% on Tuesday after the company forecasted first-quarter profits would fall as much as 75% on reduced orders.
The Apple (NASDAQ:AAPL) supplier announced late on Monday that January-March profit is set to fall between 65% to 75% year-on-year.
“In addition to a usual weak seasonal quarter, the company’s revenue for Q1 2019 is expected to be significantly negatively affected by reduced orders from customers,” AAC said in a stock exchange filing.
The profit warning came after Apple reported last month that revenue from iPhone sales in the December quarter fell 15% from the previous year, citing weak sales in China.
Morgan Stanley (NYSE:MS) downgraded AAC to "underweight" from "equal-weight" after the warning, saying it was worse than expected.
Shares of the company last traded at HK$51.05 by 1:10 AM ET (06:10 GMT), down 13.2% and is on course for its worst single-day drop since July 2017.