JPMorgan has released a research report stating that Minth Group (00425) is facing challenges from the macroeconomic environment. Consequently, the firm has lowered its profit forecasts for Minth for fiscal years 2026 and 2027 by 7% to 8%. The target price has been reduced from HK$70 to HK$60. However, JPMorgan continues to assign an 'Overweight' rating to the stock and reaffirms Minth as its top pick within the China automotive components sector.

The report mentioned that Minth's management attributed the lower-than-expected gross profit margin in the second half of last year to one-off factors. The management expects both revenue and net profit to show growth this year. Furthermore, management has raised its revenue guidance for new businesses from 2026 to 2027, which includes areas such as humanoid robots and liquid cooling solutions for AI servers.