CMSC: MINTH GROUP (00425) raises target price to HK$34. The company has started comprehensive layout of new business tracks.

CMSC released a research report stating that the target price for MINTH GROUP (00425) has been raised from 21 Hong Kong dollars to 34 Hong Kong dollars, in line with the company's historical average valuation. Previously, the company was severely undervalued due to the cancellation of dividends and potential impact of US trade protection policies. The forecasted net profit for the fiscal years 2024 to 2026 remains unchanged. According to CMSC, the company's management has started to fully layout new business tracks. In the field of humanoid Siasun Robot & Automation, the company has entered the humanoid Siasun Robot & Automation industrial chain and made breakthroughs in components, joints, intelligent skin, and face masks. There have been 60-70 sets of limb components samples, joints are in the prototype stage, and intelligent surface electromechanical skins are in the solution stage. In the low-altitude VTOL (vertical take-off and landing) aircraft product field, the products include fuselage and cabin door systems with multiple customers and high value. In addition, Chairman Qin Ronghua has invested approximately $10 million in xAI, an artificial intelligence company founded by Musk. The company has also established the Minshi Research Institute to focus on the development of new business tracks.