> **来源：[研报客](https://pc.yanbaoke.cn)** # Minth Group (425 HK) Summary ## Core Content Minth Group (425 HK) is a company that operates in both the automotive and new business sectors, with a focus on aluminium, plastics, and emerging areas such as robotics and liquid cooling. The company's financial performance and growth outlook are analyzed in the document, with a particular emphasis on its ability to maintain profitability despite challenges in its aluminium business unit. ## Main Points - **Revenue and Profit Performance**: In 2H25, Minth's revenue slightly missed expectations, with a $2\%$ YoY decrease compared to the prior forecast. However, the net profit remained in line with projections due to strict cost control, particularly in selling and R&D expenses. - **Gross Margin**: The gross margin for 2H25 decreased by 1.6ppts YoY and 0.5ppts HoH to $27.8\%$, which was $1.3\%$ lower than the forecast. This was attributed to reduced sales volume with a key client and delayed business transitions following WKW's bankruptcy. - **Net Debt Position**: The net debt at the end of FY25 was reduced by almost half to RMB2.2bn, indicating improved financial health. - **Revenue Growth Outlook**: Management has set a 5-year revenue CAGR target of $23\%$, with specific growth rates for different business units: - Metal and Trim BU: $14\%$ - Plastic BU: $27\%$ - Aluminium BU: $19\%$ - Body Structure BU: $32\%$ Excluding new businesses, revenue is expected to reach RMB72bn in FY30E. The company has also revised its revenue guidance for new businesses to RMB0.82bn in FY26E, RMB2.6bn in FY27E, and RMB10bn in FY30E. - **Earnings Projections**: - FY26E: Revenue growth of $15.9\%$, net profit growth of $13.5\%$ - FY27E: Revenue growth of $15.2\%$, net profit growth of $22.1\%$ - **Profitability Metrics**: - Gross margin: Expected to decrease to $27.5\%$ in FY26E and $27.2\%$ in FY27E. - Operating margin: Expected to decrease slightly to $11.7\%$ and $12.5\%$, respectively. - Net margin: Expected to remain stable at $10.2\%$ and $10.8\%$. - **Valuation**: - The analyst maintains a **BUY** rating and raises the target price from HK$42.00 to HK$44.00, based on a 12x FY27E P/E ratio. - The current price is HK$36.00, with a potential upside of $22.2\%$. - The company's valuation is adjusted to reflect the contribution of new businesses, and the target multiple is lowered to account for higher earnings uncertainty. - **Key Risks**: - Lower revenue or margins due to macroeconomic uncertainties. - Higher risks in overseas operations than expected. - Sector-wide de-rating could affect the valuation. ## Key Financial Data | Metric | FY23A | FY24A | FY25A | FY26E | FY27E | |--------|------|------|------|------|------| | Revenue (RMB mn) | 20,524 | 23,147 | 25,737 | 29,836 | 34,377 | | YoY Growth (%) | 18.6 | 12.8 | 11.2 | 15.9 | 15.2 | | Net Profit (RMB mn) | 1,903.2 | 2,319.3 | 2,692.2 | 3,055.8 | 3,729.7 | | YoY Growth (%) | 26.8 | 21.9 | 16.1 | 13.5 | 22.1 | | P/E (x) | 19.2 | 15.7 | 13.5 | 11.9 | 9.8 | | P/B (x) | 2.0 | 1.8 | 1.5 | 1.4 | 1.3 | | Yield (%) | 0.0 | 1.3 | 2.2 | 3.4 | 4.1 | | ROE (%) | 10.8 | 12.0 | 12.3 | 12.6 | 14.1 | | Net gearing (%) | 17.6 | 15.4 | 9.2 | 10.1 | 5.7 | ## Shareholding and Market Data - **Market Cap**: HK$42,583.8 million - **Average 3-Month Turnover**: HK$249.8 million - **52-Week High/Low**: HK$46.30 / HK$15.50 - **Total Issued Shares**: 1,182.9 million ## Shareholding Structure - **Chin Jong-Hwa's family**: 38.2% - **Invesco Asset Management**: 4.9% ## Key Risks and Analyst Certification - The analyst certifies that the views expressed reflect their personal opinions and that there are no conflicts of interest. - Key risks include lower revenue/margins, higher overseas operation risks, and sector de-rating. - CMBIGM provides ratings such as **BUY**, **HOLD**, **SELL**, **OUTPERFORM**, and **MARKET-PERFORM**, each with specific return expectations. ## Legal and Regulatory Disclosures - The report is subject to various legal and regulatory disclosures depending on the recipient's location (e.g., UK, US, Singapore). - It is not tailored advice and is for informational purposes only. - CMBIGM is not a registered broker-dealer in the US and is not subject to US regulations on research reports.