Guosheng Securities has issued a research report maintaining a "Buy" rating on MINTH GROUP (00425). The report highlights the company's accelerated overseas expansion and the volume ramp-up of new products such as battery cases. It forecasts net profit attributable to the parent company for 2026-2028 to be RMB 3.23 billion, RMB 3.75 billion, and RMB 4.35 billion, respectively, with corresponding P/E ratios of 11x, 10x, and 8x.
Key points from the report are as follows: In 2025, the company reported revenue of RMB 25.74 billion, a year-on-year increase of 11.2%. The gross profit margin was 28%, down 0.9 percentage points year-on-year. In terms of expense ratios, distribution and sales/administrative/R&D/interest expenses accounted for 4%/7.2%/5.8%/1.3% of revenue, changing by -0.5 ppts/+0.1 ppts/-0.5 ppts/-1 ppts year-on-year, respectively. Capital expenditure was RMB 2.21 billion, up 15.6% year-on-year. Net profit attributable to the parent company was RMB 2.69 billion, an increase of 16.1% year-on-year.
The profit structure continued to optimize, with overseas revenue showing significant growth. By business segment, the body structure (including front battery cases) division maintained rapid revenue growth, while traditional exterior parts developed steadily. Products such as sealing systems, bumpers, and energy storage-related items expanded into new markets. In 2025, revenue from the four main businesses—body structure/plastic parts/metal and trim/aluminum parts—increased by +41.1%/+4.6%/+0.8%/-0.5% year-on-year, respectively. Against the backdrop of steady new energy vehicle penetration, the company continues to focus on its strengths in areas like battery cases.
In 2025, the company's domestic and overseas revenue reached RMB 9.41 billion and RMB 16.33 billion, increasing by +0.9% and +18.1% year-on-year, respectively. The proportion of overseas revenue reached 63.5%, up 3.8 percentage points year-on-year. Leveraging its localized factory capacity layout, the company is well-positioned to capitalize on the expansion of the European electric vehicle market, while its traditional product business in the Americas also showed steady growth. Future plans include orderly increases in capital expenditure in North America, Europe, and Southeast Asia to further enhance its global localization strategy.
The company's customer base is becoming more diversified, and it holds a robust order book. In 2025, MINTH GROUP achieved significant breakthroughs in battery case and body chassis structure businesses, securing orders from European Toyota and Chinese clients such as Great Wall Motor and Geely for structural parts. It also won battery case orders from Chery, Changan, and BYD. The company is focusing on expanding the international market for battery cases and battery cell structures for Chinese clients, extending into peripheral products. It has successfully developed and received orders for front and rear crash modules and subframes, promoting the integration of battery cases with body chassis structures and increasing the value per vehicle.
In smart exterior and traditional products, the company continues to strengthen new business acquisitions, deepening cooperation with Chinese brands and new automakers like BYD, Geely, GAC, and SAIC. It is expanding its market share with Japanese brands internationally, breaking into Chery's Zhijie door electronic controller business, securing roof rack assembly orders from several Japanese brands, and bumper assembly business with European Renault and North American Ford.
The company is actively exploring emerging sectors to develop a second growth curve. It is focusing on several areas: 1) In smart mobility, it is proactively developing wireless charging systems for electric vehicles and is co-developing with several leading Chinese automakers. 2) In the smart robotics sector, it signed a strategic cooperation agreement with Zhiyuan Robot and completed small-batch supplies for multiple clients in 2025. Commercialization is accelerating, with a strategic partnership established with a leading robotics client for OEM and distribution services in Europe. Internal factory demonstration lines for humanoid robots are being gradually established. 3) In the low-altitude economy sector, it signed a strategic agreement with global eVTOL leader EHang Intelligent and received mass production orders. 4) In AI liquid cooling, its liquid cooling products, including manifolds and immersion cooling cabinets, have received orders from a Taiwan-based client and begun batch deliveries. The synergistic development of multiple emerging businesses is expected to unlock future growth potential.
Risks highlighted include weaker-than-expected industry demand, slower-than-expected progress in overseas markets, foreign exchange fluctuations, raw material price volatility, and data lag risks.
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