Minth Group (0425) AI Stock Analysis

• Market Cap: HK$36.47B
• Dividend Yield: 1.39%
• Average Volume (3M): 9.06M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.13
• 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: 1,181,876,800
• 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$47.24
• Price Target Upside: 51.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$39.00 ▲(25.16% Upside)

Minth Group's strong financial performance, particularly in revenue and profitability growth, is a key strength. The technical analysis supports a positive trend, although momentum indicators are neutral. Valuation is reasonable, but the modest dividend yield limits its attractiveness. The absence of recent earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and strong market demand for Minth Group's products, supporting long-term stability.

Profitability

Improved profitability reflects effective cost management and operational efficiency, enhancing the company's financial health and competitive position.

Balance Sheet Health

A conservative leverage ratio indicates financial stability, providing Minth Group with the flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Free Cash Flow Conversion

Low free cash flow conversion suggests inefficiencies in turning profits into cash, potentially limiting the company's ability to fund operations and growth initiatives.

Debt Increase

Rising debt levels could strain financial resources and increase risk, potentially impacting the company's ability to invest in future growth and innovation.

Cash Flow Data Absence

The absence of recent cash flow data impedes comprehensive financial analysis, creating uncertainty about the company's liquidity and cash management effectiveness.

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

Minth Group shows strong revenue growth and profitability with improved net profit margins and a solid balance sheet. However, the lack of cash flow data for 2024 and historically low free cash flow conversion rates are 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	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: Negative
• Last Price: 31.16
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 31.16 is below the 20-day moving average (MA) of 31.77, below the 50-day MA of 33.70, and above the 200-day MA of 27.42, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$5.26B	4.83	15.64%	8.39%	2.85%	-33.83%
0564	75 Outperform	HK$45.83B	8.08	19.86%	6.05%	2.23%	13.60%
0425	71 Outperform	HK$36.47B	13.00	12.26%	1.39%	11.06%	22.10%
1316	68 Neutral	HK$17.82B	20.89	5.45%	1.02%	4.73%	492.16%
1057	68 Neutral	HK$18.46B	23.05	9.59%	1.37%	35.32%	24.24%
0179	64 Neutral	HK$27.54B	13.25	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 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.

Minth Group Announces Share Awards to Employees

Minth Group Limited has announced the grant of share awards under its Share Award Scheme, involving 2,400,000 shares, to 139 employees. This initiative, aimed at incentivizing employees, will vest in three tranches over three years, contingent upon individual performance targets, and includes a clawback mechanism to safeguard the company’s interests.

The most recent analyst rating on (HK:0425) stock is a Hold with a HK$34.00 price target. To see the full list of analyst forecasts on Minth Group stock, see the HK:0425 Stock Forecast page.