UBS: Lowered the target price of Minth Group (00425) to 42.6 Hong Kong dollars, rating "buy"

UBS released a research report stating that it has lowered its profit forecast for Minth Group (00425) for the years 2026 to 2027 by 11% to 12%. Its target price has been lowered from HK$45.5 to HK$42.6, with a "Buy" rating. Minth Group's revenue last year increased by 11.2% year-on-year to 25.7 billion yuan, and its net profit increased by 16.1% year-on-year to 2.7 billion yuan. In the second half of the year alone, its revenue increased by 11.6% year-on-year to 13.5 billion yuan, mainly due to strong delivery of battery shell orders. The group paid a dividend of 0.764 yuan per share at the end of the period, with a dividend payout ratio of about 30%, higher than the 20% in 2024 but not yet restored to the previous level of 40%. The bank pointed out that in 2025, the revenue and gross profit contribution of the battery shell business accounted for 29% and 25% respectively, and believes that this business segment will continue to be the main growth driver for Minth Group in 2026.