BofA Securities: Raises target price of MINTH GROUP (00425) to HKD 57, bullish on new business prospects.

Bank of America Securities released a research report stating that MINTH GROUP (00425) will achieve sustainable profit growth in 2026. Its new businesses include Siasun Robot&Automation, Solid Oxide Fuel Cells (SOFC), and progress in liquid cooling systems. The bank raised its target price for Minth from HK$52 to HK$57 and reiterated a "buy" rating. Management indicated that Siasun Robot&Automation business is expected to contribute RMB 500 million in sales to the company in 2026, including component sales and assembly of Siasun Robot&Automation. In addition, the company has begun the component business of SOFC solutions, and has sent samples of interconnectors, support structures, and bipolar plates to potential customers. It has also received new orders for support structures, bipolar plates, and frames from Chinese SOFC customers. In the liquid cooling business, manifold tubes and liquid cooling boxes started shipping at the end of 2025, with more new products such as liquid cooling plates and coolant distribution units (CDUs) set to ship in the second half of 2026. Taking into account the latest growth and profit margin assumptions, Bank of America lowered its earnings forecasts for Minth in 2026 and 2027 by 1% and increased by 1%, to RMB 2.7 and RMB 3.13 respectively. It introduced an earnings forecast of RMB 3.52 per share for 2028. The bank believes that Minth's valuation is attractive (equivalent to a forecast P/E ratio of 12 times in 2026) and holds a positive view on its new businesses.