Minth Group (0425) AI Stock Analysis

• Market Cap: HK$43.05B
• Dividend Yield: 1.39%
• Average Volume (3M): 9.06M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.06
• Revenue Growth: 11.06%
• EPS Growth: 22.10%
• Country: HK
• Employees: 25,663
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.25
• Shares Outstanding: 1,181,950,800
• 10 Day Avg. Volume: 7,079,715
• 30 Day Avg. Volume: 9,059,091
• PEG Ratio: 0.31
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 12.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$48.59
• Price Target Upside: 35.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$43.00 ▲(20.11% Upside)

The score is driven primarily by strong growth and improving profitability alongside a generally healthy balance sheet. Offsetting this, cash flow visibility and conversion are weaker due to missing 2024 cash flow data and low historical FCF-to-income conversion. Technically, the trend is positive, but overbought signals raise near-term risk; valuation is reasonable with a modest dividend.

Positive Factors

Revenue and Margin Expansion

Sustained double-digit revenue growth alongside rising gross and net margins indicates structural demand for Minth's products and improving operational leverage. Higher EBIT/EBITDA margins support reinvestment in product development and capacity, bolstering durable profit generation.

Conservative Capital Structure

A moderate leverage profile and majority equity financing provide financial flexibility for capex, R&D, and working capital. Solid ROE reflects efficient use of equity, reducing refinancing risk and supporting resilience through automotive cycles over the medium term.

OEM Relationships & Product Breadth

Deep relationships with major OEMs, scale advantages, and targeted R&D create durable competitive advantages. Long-term supply contracts and a broad product mix (decorative trim to battery housings) strengthen revenue visibility and market share across geographies.

Negative Factors

Weak Cash Conversion

Extremely low free cash flow conversion means reported profits convert poorly into cash, limiting internal funding for capex, dividends, and debt reduction. Over 2–6 months this raises reliance on external financing and increases vulnerability if margins or working capital trends deteriorate.

Cash Flow Visibility Gap

Missing 2024 cash flow disclosures reduce clarity on working capital trends and real cash generation. This hampers reliable assessment of the sustainability of margins and investment plans, increasing uncertainty about liquidity and free cash flow stability in the near-to-medium term.

Rising Total Debt

Although current leverage is moderate, rising total debt can pressure interest coverage and credit metrics if cash conversion remains weak. Elevated indebtedness could constrain strategic flexibility and increase financing costs over the medium term, especially in adverse auto cycles.

Minth Group Business Overview & Revenue Model

Company Description

Minth Group Limited, an investment holding company, designs, develops, manufactures, processes, and sells automobile body parts and molds of passenger cars in the People's Republic of China, the United States, Japan, Thailand, Germany, and Mexico. The company also manufactures, develops, and sells batteries and motor systems for electric vehicles, as well as optical parts, metal molds, automation machines, software, and production lines; manufactures buses, modified cars, and electric vehicles; and offers bookkeeping services. In addition, it engages in the import and export trading, packaging materials wholesale, logistics, and technology import activities; trade and manufacture of metal products; manufacture and sale of electrical and electronic equipment; and design, development, import, and export of robots. Further, the company provides automobile glass, light metals casting, customer service and market development, agriculture, and management consulting services. Minth Group Limited was founded in 1992 and is headquartered in Jiaxing, the People's Republic of China.

How the Company Makes Money

Minth Group generates revenue primarily through the sale of automotive components to original equipment manufacturers (OEMs) and tier-one suppliers. The company's revenue model is based on long-term contracts and agreements with major automotive brands, which provide a stable income stream. Key revenue streams include the production of decorative trims, battery housings, and other critical automotive parts. Additionally, Minth benefits from economies of scale and operational efficiencies, which help to maintain competitive pricing. Strategic partnerships with leading automobile manufacturers and investments in research and development to innovate and enhance product offerings also contribute significantly to its earnings.

Minth Group Financial Statement Overview

Summary

Strong income statement performance with 12.77% YoY revenue growth (2023–2024) and improving profitability (net margin up to 10.02%, healthy EBIT/EBITDA margins). Balance sheet is solid with moderate leverage (debt-to-equity 0.42) and a stable equity base (equity ratio 52.75%), though rising total debt warrants monitoring. Cash flow quality is the key drag due to missing 2024 cash flow data and weak historical cash conversion (FCF to net income 0.05 in 2023).

Income Statement

Minth Group's income statement reveals strong revenue growth of 12.77% year-over-year from 2023 to 2024, indicating robust business expansion. The gross profit margin stands at 28.93% for 2024, reflecting effective cost management. Net profit margin improved to 10.02% from the previous year's 9.27%, showcasing enhanced profitability. The EBIT and EBITDA margins also show healthy levels at 11.00% and 16.62% respectively, indicating operational efficiency.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.42 in 2024, suggesting conservative leverage. The return on equity (ROE) is strong at 11.35%, indicating efficient use of equity capital. The equity ratio is 52.75%, reflecting a stable capital structure with more than half of the assets financed by equity. However, the increase in total debt from 2023 to 2024 needs to be monitored.

Cash Flow

Cash flow analysis reveals a lack of available data for 2024, impeding a comprehensive assessment. However, the free cash flow growth improved significantly in 2023 with positive free cash flow after negative results in 2022. This indicates a turnaround in cash management. The free cash flow to net income ratio in 2023 was low at 0.05, suggesting room for improvement in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.34B	23.15B	20.52B	17.31B	13.92B	12.47B
Gross Profit	7.01B	6.70B	5.62B	4.77B	4.08B	3.86B
EBITDA	4.21B	3.85B	3.26B	2.45B	2.01B	2.35B
Net Income	2.53B	2.32B	1.90B	1.50B	1.50B	1.40B
Balance Sheet
Total Assets	40.64B	38.76B	37.55B	33.27B	29.64B	27.21B
Cash, Cash Equivalents and Short-Term Investments	4.04B	2.95B	4.75B	4.38B	5.60B	6.61B
Total Debt	8.95B	8.50B	9.77B	8.30B	7.26B	6.54B
Total Liabilities	17.91B	17.50B	18.41B	15.58B	13.09B	11.89B
Stockholders Equity	21.85B	20.45B	18.32B	16.92B	16.02B	14.94B
Cash Flow
Free Cash Flow	2.07B	1.34B	86.68M	-1.48B	-1.82B	-133.13M
Operating Cash Flow	3.78B	3.27B	3.37B	1.86B	1.32B	2.08B
Investing Cash Flow	-3.39B	-3.19B	-3.50B	-3.04B	-1.95B	-3.41B
Financing Cash Flow	-2.51B	-1.80B	51.86M	-124.70M	149.24M	1.67B

Minth Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0425, the sentiment is Positive. The current price of 35.8 is above the 20-day moving average (MA) of 34.29, above the 50-day MA of 33.29, and above the 200-day MA of 28.72, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 45.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0425.

Minth Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1809	78 Outperform	HK$5.24B	4.80	15.64%	8.39%	2.85%	-33.83%
0564	75 Outperform	HK$47.04B	8.44	19.86%	6.05%	2.23%	13.60%
0425	73 Outperform	HK$43.05B	15.35	12.26%	1.39%	11.06%	22.10%
1316	68 Neutral	$16.72B	19.59	5.45%	1.02%	4.73%	492.16%
1057	65 Neutral	HK$15.23B	22.69	9.59%	1.37%	35.32%	24.24%
0179	64 Neutral	HK$24.92B	11.99	9.85%	2.03%	-3.02%	11.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Minth Group Corporate Events

Minth Group Unveils New Logo to Reflect Global Strategy and Technological Focus

Minth Group Limited has introduced a new corporate logo to reflect its updated positioning and strategy, with the design integrating the letters “M” for Minth and “W” for Worldwide to symbolize global expansion and continuous evolution. The three continuous lines in the logo are intended to represent the group’s three strategic pillars—technological strength, global network and forward-looking momentum—and the new branding will be rolled out across all corporate documents and promotional materials. The change will have no impact on shareholders’ rights: existing share certificates bearing the old logo remain fully valid for trading, settlement, registration and delivery, with the company planning a gradual transition to new certificates once current inventory is exhausted, signaling an image refresh without operational disruption for investors or market participants.

The most recent analyst rating on (HK:0425) stock is a Buy with a HK$39.00 price target. To see the full list of analyst forecasts on Minth Group stock, see the HK:0425 Stock Forecast page.

Minth Group Adds Disclosure on Former CEO’s 2019 Remuneration

Minth Group Limited has issued a supplemental announcement to its 2019 annual report to provide additional disclosure on the remuneration of former chief executive officer Chen Bin Bo, in compliance with Hong Kong listing requirements. The company disclosed that Mr. Chen, who was appointed CEO on 21 August 2019 and later became an executive director in May 2020 before stepping down in May 2022, received total emoluments of RMB3.189 million for 2019, comprising salary, other benefits, a discretionary or performance-related bonus, and retirement scheme contributions, with no inducement or loss-of-office payments made; the company emphasized that all other information in the 2019 annual report remains unchanged.

The most recent analyst rating on (HK:0425) stock is a Buy with a HK$39.00 price target. To see the full list of analyst forecasts on Minth Group stock, see the HK:0425 Stock Forecast page.

Minth Group Enters Strategic AI Robotics Collaboration for European Market

Minth Group has announced a three-year strategic collaboration with a leading Robotics Company to manufacture and distribute artificial intelligence-enabled general embodied intelligent robots. This partnership strengthens Minth Group’s position in the robotics field by securing its role as an OEM manufacturing and distribution partner for the European market. The collaboration is expected to open up opportunities in both the automotive and non-automotive sectors, further diversifying the company’s operations while advancing its strategy of growth in innovative technology sectors.

The most recent analyst rating on (HK:0425) stock is a Buy with a HK$39.00 price target. To see the full list of analyst forecasts on Minth Group stock, see the HK:0425 Stock Forecast page.

Minth Group Expands into AI Server Liquid Cooling Market

Minth Group Limited has announced that its subsidiary, UATC, has secured orders from a Taiwanese AI server manufacturer to produce immersion liquid cooling tanks, with deliveries starting in November 2025. The company is also partnering with Formen Technology to expand its AI server liquid cooling systems business, anticipating rapid growth in this sector due to increasing demand for AI solutions.

The most recent analyst rating on (HK:0425) stock is a Buy with a HK$39.00 price target. To see the full list of analyst forecasts on Minth Group stock, see the HK:0425 Stock Forecast page.