China Merchants Bank International has issued a research report stating that MINTH GROUP (00425) is expected to achieve gross margins of 28.5% to 28.7% from this year through 2027, lower than the 28.9% recorded in 2024, due to the rising proportion of battery shell products which carry slightly lower profit margins. The firm projects the company's net profit to grow 15% to 19% year-on-year during the same period, reaching RMB 2.7 billion, RMB 3.1 billion, and RMB 3.7 billion respectively. The firm maintains a "Buy" rating on MINTH and has raised its target price from HK$26 to HK$38. MINTH's key operational indicators in the first half of the year, including new business orders, R&D, capital expenditure, localization, and cash flow performance, remained robust, further strengthening the firm's confidence in the company's operational efficiency capabilities and confirming its view that MINTH is positioned better than most peers in the global automotive parts industry. The firm forecasts that based on the continuously increasing order backlog, MINTH's revenue will grow 12% and 13% year-on-year in the next two years respectively, with minimal expected contribution from robotics and electric vertical take-off and landing aircraft products. Should any new business reach an inflection point, revenue growth could be even higher.