Citi has released a research report initiating a 90-day upward catalyst watch on MINTH GROUP (00425), with a target price of HK$46 and a "Buy" rating. The report indicates that the large-scale delivery of AI liquid cooling products likely commenced in January, and it is expected that MINTH will secure further orders in the AI liquid cooling sector. Furthermore, the bank believes Germany's reintroduced subsidy policies could present an upside risk to MINTH's European sales. Other potential catalysts include the manageable impact of rising aluminum prices; the limited effect of increased Mexican tariffs, estimated to involve approximately $1 million by 2026; a projected revenue contribution of around RMB 100 million from the robotics business by 2026; and an attractive valuation with a dividend yield of 3.8% and a payout ratio of 40%.
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