HK Stock Market Move | Minshi Group (00425) fell by more than 5% after performance; last year's net profit increased by 16.1% year on year, with a dividend payout ratio of about 30%.

Minsheng Group (00425) fell more than 5% after performance. As of the time of publication, it had fallen by 5.06% to HK$31.88, with a turnover of HK$129 million. On the news front, on the evening of March 23, Minsheng Group announced its performance for 2025. Operating income increased by about 11.2% to approximately HK$25.737 billion; gross profit increased by about 7.6% to approximately HK$7.207 billion; the attributable profit to owners of the company increased by about 16.1% to approximately HK$2.692 billion; and a final dividend of HK$0.764 per share was declared. The company stated that the increase in net profit was due to economies of scale from revenue growth, continuous improvement in the utilization rate of production capacity of product lines, and cost reduction and efficiency enhancement measures in various product lines, resulting in a better gross profit compared to the previous year. In addition, the group continues to strictly control expenses, further improving the quality of profits. A research report from UBS pointed out that Minsheng Group's revenue increased by 11.2% to HK$25.7 billion last year, while net profit increased by 16.1% to HK$2.7 billion. In the second half of the year alone, its revenue increased by 11.6% to HK$13.5 billion, mainly due to strong deliveries of battery casing orders. The group declared a final dividend of HK$0.764, with a payout ratio of approximately 30%, higher than the 20% in 2024, but still below the previous level of 40%. The bank lowered its earnings forecast for the company for 2026 to 2027 by 11% to 12%, and revised its target price from HK$45.5 to HK$42.6, with a "Buy" rating.