Guosheng Securities Initiates Coverage on MINTH GROUP (00425) with "Buy" Rating, Citing Growth Potential in Robotics and Emerging Sectors

Stock News2025-12-25

Guosheng Securities released a research report highlighting MINTH GROUP (00425) as a leader in automotive exterior and structural components, with expanding product lines and clientele. The firm forecasts net profits attributable to shareholders of RMB2.813 billion, RMB3.443 billion, and RMB4.073 billion for 2025-2027, reflecting year-on-year growth of 21%, 22%, and 18%, respectively. Current valuations stand at 13x, 11x, and 9x P/E for these years. With battery enclosures and other new products scaling up and overseas expansion accelerating, Guosheng initiated coverage with a "Buy" rating. Key insights include:

**Global Leader with Diversified Business**: MINTH GROUP, with over three decades in the industry, specializes in metal trims, plastic parts, aluminum components, and NEV battery enclosures. Serving 70+ global automakers like BMW, Mercedes-Benz, Tesla, and BYD, overseas revenue rose from 41% in 2021 to 65% in H1 2025. Battery enclosures now contribute 27% of revenue, becoming the top segment, while aluminum parts maintain a 30%+ gross margin amid auto lightweighting trends. Improved capacity utilization and cost control drove robust revenue and profit growth.

**Stable Core, Emerging Drivers**: Traditional exterior parts remain steady, while aluminum components gain traction in premium European and American brands. Smart exterior products are progressing, with clients like Huawei and Toyota. Battery enclosure revenue CAGR surged 173% from 2020-2024, supported by global production in Serbia, France, and Poland. Expansion into crash modules, subframes, and cast structural parts is boosting per-vehicle value.

**New Frontiers**: Leveraging automotive expertise, MINTH is venturing into humanoid robotics, liquid cooling, and urban air mobility. A partnership with Zhiyuan Robotics targets joint development of modular joints and e-skin, with pilot production underway. Liquid cooling for AI servers has secured orders from a leading Taiwanese supplier, with mass production planned by end-2025 via a joint venture with Forman Technology. Collaboration with EHang on eVTOL airframes and rotor systems has yielded volume orders, while Siemens is co-developing wireless EV charging solutions. These initiatives align with core technologies, unlocking long-term growth.

**Risks**: Potential downside includes weaker-than-expected industry demand, overseas delays, currency fluctuations, raw material volatility, and data timeliness.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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