HK Stock Market Move | MINTH GROUP (00425) rose over 3%, overseas business returned to growth, institutions are optimistic about the company's high growth in revenue from battery box business in the first half of the year.

MINTH GROUP (00425) rose more than 3%, up 2.98% as of the press time, to HKD 25.9, with a turnover of HKD 60.0785 million. CMB International released a research report stating that MINTH GROUP's profits are entering a strong recovery track, with overseas business returning to growth. Despite intensified competition in the mainland market in the short term, the bank remains optimistic about the expansion of the mainland business and the robust outlook for the global automotive market. The bank expects MINTH GROUP's full-year gross margin to continue to recover this year, with the gross margin of battery shell business expected to expand to nearly 24%, while traditional aluminum decorative parts will maintain around 35%. The bank expects the proportion of low-margin battery shells to increase from about 23% in 2023 to 30%, 35%, and 41% in 2025, 2026, and 2027, respectively. The expansion of overseas business layout and the increase in global production capacity utilization will help offset the challenges in the mainland market environment. Zhongjin pointed out, according to ACEA, the EU new energy passenger car sales achieved strong growth momentum in 5M25, with cumulative pure electric vehicle registrations increasing by 26.1% to 701,000 vehicles, with a penetration rate of 15.4%, up 3.3 percentage points year-on-year; plug-in hybrid sales increased by 15% to 375,000 vehicles; pure electric vehicle registrations in the UK in 5M25 increased by 33.4% year-on-year. In terms of market structure, Volkswagen, Renault, BMW and other automakers have stabilized and increased their market share overall. According to the China Association of Automobile Manufacturers, in 1H25, China's passenger car production and wholesale both achieved double-digit growth, with wholesale sales of pure electric vehicles increasing by 40.9% year-on-year. The bank believes that Europe and China are the main markets for the company's battery box business, and the company deep cooperation with top European new energy market car companies, and the impressive sales of pure electric vehicles in the Chinese market in 1H25, the company's revenue from the battery box business is expected to achieve high growth thereafter.