Daiwa has released a research report reiterating its "Buy" rating on MINTH GROUP (00425). Based on a sum-of-the-parts valuation method, the target price has been raised from HK$40 to HK$52. The firm also increased its net profit forecasts for this year and next by 4% to 5%, reflecting incremental changes in the company's business operations. Daiwa reviewed MINTH Group's earnings forecasts and incorporated some positive business updates. Among these, new energy vehicle sales in Europe last year increased by approximately 30% year-on-year, reaching 3 million units. Since the beginning of this year, Germany has reinstated national subsidies for new energy vehicle purchases targeted at low- to middle-income families, which is seen as providing strong momentum for Europe to achieve mid-double-digit percentage growth in NEV sales this year. Currently, 70% of the group's battery casing orders are sourced from European customers. Daiwa stated that, according to data from Global Market Insights, the global market size for liquid cooling systems in data centers could reach $6 billion this year and grow to $12 billion by 2030. It is projected that between 2026 and 2030, MINTH has the potential to capture a 3% to 5% market share within the value chain.
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