In "The Big Banks," China International Capital Corporation raised the target price for MINTH GROUP to 41 yuan and maintained a "Buy" rating

Bank of China International published a research report stating that MINTH GROUP (00425.HK) is driven by the rapid increase in the penetration rate of new energy vehicles in Europe and a significant growth in overseas demand for battery boxes. The company's total revenue is expected to increase by 11.6% year-on-year in 2025, overall in line with expectations. However, due to the shift in product structure towards lower-margin battery box business and slower-than-expected production ramp-up of some aluminum projects, the gross margin is expected to decline by 0.9 percentage points year-on-year to 28%, slightly below expectations. Benefiting from strict cost control, the annual net profit is expected to increase by 16.1%, reaching a historical high of 2.7 billion RMB (the same below).

The report mentioned that MINTH expects to maintain double-digit growth in both revenue and net profit this year, while the expense ratio is expected to further decline. Although this year's capital expenditure budget has slightly increased from 2.2 billion RMB in 2025 to within 2.5 billion RMB, the company remains committed to increasing the dividend payout ratio.

In light of the positive outlook for overseas business, the bank has slightly raised the company's revenue forecasts for 2026 to 2027 by 1% to 4%, to 28.9 billion and 32.7 billion RMB, respectively, and has also raised the net profit forecasts to 3 billion and 3.4 billion RMB. Considering the resilience of the company's automotive parts business profit growth, as well as breakthroughs in several new tracks such as humanoid robots, low-altitude economy, and AI server liquid cooling, which have become new growth curves for the company, the rating is maintained at "Buy," with the target price raised from the original 35 HKD to 41 HKD