In a report released on August 28, Ji Shi from CMB International Securities maintained a Buy rating on Minth Group, with a price target of HK$38.00.
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Ji Shi has given his Buy rating due to a combination of factors that highlight Minth Group’s strong financial performance and promising growth prospects. The company’s earnings for the first half of 2025 were in line with expectations, with a notable 11% year-over-year increase in revenue. This growth is supported by solid operating metrics, including new business orders, research and development, capital expenditures, and cash flow, which indicate Minth’s operational efficiency and competitive positioning in the global auto parts industry.
Furthermore, Ji Shi anticipates continued steady revenue growth for Minth Group, with projections of 12% and 13% year-over-year increases in fiscal years 2026 and 2027, respectively. This optimism is based on the company’s expanding order backlog and potential new business ventures. Additionally, Minth’s gross profit margin is expected to remain stable, and net profits are projected to rise significantly in the coming years. The raised target price and valuation multiple reflect Minth’s early involvement in high-growth potential businesses and improved market sentiment, despite potential risks such as lower revenue or margins and challenges in overseas operations.
Shi covers the Consumer Cyclical sector, focusing on stocks such as Geely Automobile Holdings, China MeiDong Auto Holdings, and Minth Group. According to TipRanks, Shi has an average return of 17.9% and a 60.00% success rate on recommended stocks.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a HK$40.00 price target.