MINTH GROUP Shares Climb Nearly 3% on Strong Pricing Power, Brokerage Sees Stable Margins This Year

Stock News
02/06

MINTH GROUP (00425) rose nearly 3% in Hong Kong trading. At the time of writing, the stock was up 1.83%, trading at HK$36.76 with a turnover of HK$47.02 million. A research report from UOB Kay Hian stated that, according to the strategic goals set by MINTH GROUP's management, the company aims to achieve revenue of RMB 72 billion by 2030. This implies a compound annual growth rate exceeding 20% over the next five years, surpassing the brokerage's forecast of 13% and the market consensus of 14% to 15%. The report indicated that additional growth drivers for the company are expected to come from new product lines, including smart exterior parts, liquid cooling components, humanoid robot parts, electric vertical take-off and landing aircraft components, and wireless charging parts. UOB Kay Hian further noted that despite recent increases in aluminum prices, the company possesses an effective cost-pass-through mechanism and anticipates gross margins will remain stable in 2026. CLSA expressed the view that Germany's recent introduction of electric vehicle subsidies could serve as a significant catalyst for MINTH GROUP, a leading battery enclosure supplier in Europe. The brokerage also has minimal concerns regarding rising aluminum costs, expecting that margins for aluminum products will have greater cushioning due to new orders and operating leverage.

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