Soochow Securities Initiates Coverage on MINTH GROUP (00425) with "Buy" Rating, Citing Growth Potential in Robotics and Server Liquid Cooling

Stock News14:20

Soochow Securities has initiated coverage on MINTH GROUP (00425), a global leader in automotive exterior and structural components, with a "Buy" rating. The company is strategically investing in vehicle electrification and has become the world's largest supplier of battery enclosures and structural components. Additionally, MINTH GROUP is expanding into humanoid robotics, low-altitude mobility, and server liquid cooling, unlocking new growth avenues.

With a strong reputation for product quality and stable supply capabilities, MINTH GROUP has established long-term partnerships with leading global automakers. Soochow Securities highlights the following key points:

**Battery Enclosure Business Benefits from Overseas Electrification Push** Battery enclosures, critical for the safety and protection of battery modules in new energy vehicles (NEVs), are a key component in integrated chassis systems. The market is expanding rapidly alongside rising NEV adoption. Estimates suggest China's NEV battery enclosure market will grow from RMB 31.8 billion in 2024 to RMB 78.2 billion by 2030, while Europe's market is projected to rise from RMB 9.4 billion to RMB 29.9 billion over the same period.

Given stringent OEM certification requirements, the battery enclosure sector is more consolidated than general aluminum die-casting. Leveraging its expertise in aluminum materials and processes, MINTH GROUP has secured partnerships with European, American, Japanese, and domestic automakers, including emerging EV brands. The company’s battery enclosure revenue and profitability have grown steadily, driven by Europe’s accelerating electrification.

**Robotics and Server Liquid Cooling Open New Opportunities** In robotics, MINTH GROUP applies its automotive manufacturing excellence to humanoid robotics, focusing on integrated joint modules, electronic skins, smart masks, wireless charging, and structural components. It has partnered with major domestic robotics developers.

For AI server liquid cooling, rising energy demands and higher power densities are accelerating adoption. MINTH GROUP’s expertise in battery enclosures/liquid cooling plates, global production footprint, and ties with top server manufacturers position it well in this sector. The company has already secured orders from AI server clients, with deliveries starting by end-2025.

**Earnings Forecast** Soochow Securities projects 2025–2027 net profits of RMB 2.753 billion, RMB 3.257 billion, and RMB 3.878 billion, with EPS of RMB 2.34, RMB 2.76, and RMB 3.29, respectively. The P/E ratios stand at 11.91x, 10.07x, and 8.46x for these years.

As a top-tier auto parts supplier, MINTH GROUP is poised to benefit from Europe’s EV transition while diversifying into high-potential sectors like robotics and liquid cooling.

**Risks**: Slower-than-expected auto sales; intensified price wars in the auto sector; delays in new business development.

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