Guosheng: Give MINTH GROUP (00425) a "buy" rating, Siasun Robot & Automation and other emerging tracks open up long-term growth space.

Guosheng issued a report stating that MINTH GROUP (00425), as a leading company in the field of exterior parts and body structure components, continues to expand into new products and new customers. It is expected that the net profit attributable to the parent company will be 2.813/3.443/4.073 billion yuan from 2025 to 2027, with an increase of 21%/22%/18% respectively. The corresponding market value PE ratios are 13/11/9x respectively. Considering that new products such as battery boxes are in the phase of ramping up production and overseas market expansion, the company is given a "buy" rating in its first ever coverage. Guosheng's main points are as follows: Leading enterprise in global automotive exterior and body structure components, with a business layout combining depth and breadth MINTH GROUP has been deeply engaged in the industry for more than 30 years, with core businesses covering four major product lines including metal trim, plastic parts, aluminum parts, and new energy automotive battery boxes. As a global supplier, the company's business layout is extensive, serving over 70 top domestic and international car companies such as BMW, Mercedes-Benz, Tesla, BYD Company Limited, with overseas revenue increasing from 41% in 2021 to 65% in the first half of 2025. The company's global strategy has shown significant progress. The business structure continues to be optimized, with the battery box business becoming a key focus, accounting for 27% of revenue in the first half of 2025 and becoming the largest source of revenue; the aluminum parts products benefit from the trend of automotive lightweighting, with a revenue CAGR of 12% from 2020 to 2024, with a gross profit margin maintained above 30%. Meanwhile, benefiting from the improvement in production capacity utilization and cost control, the company has achieved rapid growth in revenue and net profit. Steady contribution from exterior parts business, with battery boxes and structural components serving as growth engines The company's traditional business is well established, with metal trim, plastic parts, and aluminum parts having a rich variety of products and sustained performance growth. The company has opened up value space with a dual upgrade in lightweighting and smartification: the penetration rate of aluminum exterior parts continues to increase, with related products gradually entering the supply chains of high-end European and American brands; at the same time, actively developing smart exteriors, progress in related products has been positive, with known customers such as Huawei and Toyota already developed. The battery box business is a core new energy track, and the company has established a global supply system, with factories in Serbia, France, Poland, etc., which have successively started production, with a revenue CAGR of up to 173% from 2020 to 2024. At the same time, extending to products such as front and rear collision modules, subframes, and die-cast structural components has also garnered orders, gradually achieving integration of battery boxes and body chassis structures, thereby significantly increasing the value of single vehicle accessories. Multiple breakthroughs in emerging tracks, accelerating the formation of the second growth curve Leveraging the technological and capacity accumulations in the automotive manufacturing field, the company has actively entered new emerging tracks such as humanoid Siasun Robot & Automation, liquid cooling, and low-altitude economy. In the field of humanoid Siasun Robot & Automation, the company has signed a strategic cooperation agreement with Zhiyuan Siasun Robot & Automation, jointly developing joint modules, electronic skins, etc., and has completed small batch samples and built a demonstration production line in-house; the AI server liquid cooling business has received orders from leading Taiwanese manufacturers and entered the global semiconductor supply chain, jointly established factories with Forman Technology, and is expected to have mass production capacity by the end of 2025; in the field of low-altitude aircraft, the company has partnered with EHang Intelligence to develop eVTOL aircraft bodies and rotor systems, with production orders already received; and jointly with Siemens, the company has released wireless charging systems for electric vehicles to create intelligent travel solutions. The company's emerging businesses are closely synergized with its main technology, with ongoing commercialization progress, opening up long-term growth space for the company. Risk factors: risks of industry demand falling below expectations, risks of overseas market expansion falling below expectations, risks of exchange rate fluctuations, risks of fluctuations in raw material prices, and risks of data lag.