Minth Group (0425) AI Stock Analysis

• Market Cap: HK$22.83B
• Dividend Yield: 2.23%
• Average Volume (3M): 5.99M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.03
• Revenue Growth: 10.73%
• EPS Growth: 19.45%
• Country: HK
• Employees: 25,663
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 1.17
• Shares Outstanding: 1,162,277,000
• 10 Day Avg. Volume: 5,066,407
• 30 Day Avg. Volume: 5,985,990
• PEG Ratio: 0.31
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$26.22
• Price Target Upside: 32.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: ―

Minth Group's stock is supported by strong financial performance, particularly in revenue growth and profitability. The valuation aspect is favorable, suggesting the stock is undervalued. However, technical analysis indicates bearish momentum, and cash flow concerns limit the overall score.

Positive Factors

Earnings

The stock has a robust earnings outlook, driven by a strong order backlog and improvements in margins, with earnings expected to grow at a 20% CAGR.

Financial Performance

Gross profit margins have improved due to declining material costs and operational efficiencies, with further improvements expected.

Industry Trends

Minth is benefiting from the electrification trend and intelligent vehicle solutions, with additional growth from the emerging robotics sector.

Negative Factors

Geopolitical Risks

Minth is better positioned in the global auto parts industry than most peers, despite the rising geopolitical risks.

Market Risks

Global vehicle market slowdown, slower overseas expansion, and higher raw material costs may impact Minth Group.

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 its automotive components and systems to global automakers. The company's key revenue streams include the production and distribution of exterior body parts, such as trims, moldings, and structural components, which are supplied to original equipment manufacturers (OEMs) in the automotive industry. Additionally, Minth Group benefits from strategic partnerships and collaborations with leading automotive brands, which help in expanding its market presence and securing long-term contracts. These partnerships, along with the company's focus on innovation and quality, contribute significantly to its earnings by ensuring a steady demand for its products.

Minth Group Financial Statement Overview

Summary

Minth Group shows strong growth and profitability with improvements in revenue and net profit margins. The balance sheet is robust with a good equity position and moderate leverage. However, the absence of cash flow data for 2024 and low free cash flow conversion rates are potential concerns.

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
19.80B	23.15B	20.52B	17.31B	13.92B	12.47B
	Gross Profit
5.22B	6.70B	5.62B	4.77B	4.08B	3.86B
	EBIT
1.77B	2.89B	1.96B	1.41B	1.16B	1.53B
	EBITDA
2.96B	3.85B	3.26B	2.45B	2.01B	2.35B
	Net Income Common Stockholders
1.73B	2.32B	1.90B	1.50B	1.50B	1.40B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.60B	2.95B	4.75B	4.38B	5.60B	6.61B
	Total Assets
29.64B	38.76B	37.55B	33.27B	29.64B	27.21B
	Total Debt
7.26B	8.50B	9.77B	8.30B	7.26B	6.54B
	Net Debt
1.77B	6.06B	5.61B	4.08B	1.77B	530.24M
	Total Liabilities
13.09B	17.50B	18.41B	15.58B	13.09B	11.89B
	Stockholders Equity
16.02B	20.45B	18.32B	16.92B	16.02B	14.94B
Cash Flow		Free Cash Flow
-592.82M	0.00	86.68M	-1.48B	-1.82B	-133.13M
	Operating Cash Flow
3.10B	0.00	3.37B	1.86B	1.32B	2.08B
	Investing Cash Flow
-4.26B	0.00	-3.50B	-3.04B	-1.95B	-3.41B
	Financing Cash Flow
634.74M	0.00	51.86M	-124.70M	149.24M	1.67B

Minth Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 19.84 is below the 20-day moving average (MA) of 20.48, above the 50-day MA of 18.96, and above the 200-day MA of 16.36, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 28.14 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
0425	65 Neutral	HK$22.83B	9.02	11.97%	2.23%	10.73%	19.45%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
JELCF		$2.57B	8.35	10.07%	1.84%	―	―
NTXVF		$1.72B	25.52	3.13%	0.47%	―	―
W4K1		€968.92M	19.02	9.28%	1.49%	―	―
0564	83 Outperform	HK$32.71B	6.90	18.67%	5.57%	-0.25%	16.01%
1809	78 Outperform	HK$4.94B	3.47	21.97%	12.99%	8.48%	25.41%

Minth Group Corporate Events

Minth Group Limited Announces Annual General Meeting and Key Appointments

Minth Group Limited has announced its upcoming annual general meeting scheduled for May 30, 2025, in Hong Kong. The meeting will address several key business items, including the approval of audited financial statements, declaration of a final dividend, and the election and appointment of directors. These decisions are crucial for the company’s governance and strategic direction, impacting its operational leadership and stakeholder interests.

Minth Group Enters Strategic Collaboration with AgiBot on AI Robotics

Minth Group has announced a strategic collaboration with AgiBot to innovate and develop artificial intelligence and humanoid robotics over the next three years. This partnership aims to enhance intelligent robotics through smart exterior technologies, wireless charging, and flexible manufacturing solutions, leveraging Minth Group’s expertise in auto parts manufacturing. The collaboration is expected to position Minth Group ahead in the emerging intelligent robotics market, opening new revenue streams and enhancing production efficiency.

Minth Group Schedules Board Meeting to Review 2024 Financial Results

Minth Group Limited has announced a board meeting scheduled for March 24, 2025, to review and approve the company’s final results for the year ending December 31, 2024, and to consider a final dividend payment. This meeting is crucial for stakeholders as it will provide insights into the company’s financial health and potential shareholder returns.