AAC’s 4Q21 net profit fell 72% yoy and FY21 net profit fell 13% yoy due to weak GPM recovery in acoustics and losses for the optics segment. We think handset lens’ GPM will remain low due to competition and a poor product mix; new optics products are also likely to see low profit margins. Reiterate Reduce. TP cut to HK$16.73 on 23%/10% FY22F/23F EPS cuts.