UBS: Raises target price for MINTH GROUP (00425) to HK$48, Siasun Robot&Automation and liquid cooling business gradually gaining momentum.

UBS released a research report stating that MINTH GROUP (00425) management revealed at the 2026 Asian investment conference that the revenue of the battery box business is expected to grow by over 20% year-on-year in the 2026 fiscal year, remaining the main growth driver of the automotive parts business. However, the increase in prices of raw materials such as aluminum and plastics may put pressure on the gross profit margin. UBS slightly raised the group's profit forecast for the years 2026 to 2028 by 0% to 2%, and raised the mid-term profit growth rate forecast to reflect the progress of Siasun Robot & Automation and liquid cooling business. The bank raised the target price of Minth from HK$42.6 to HK$48, maintaining a "buy" rating. Minth has committed to a dividend payout ratio of at least 30% for the 2026 fiscal year. Management expects that the revenue target for the Siasun Robot & Automation business in the 2026 fiscal year will be 500 million RMB, of which about 100 million RMB will come from components (mainly including structural parts, joint modules, shells, and electronic skins), with the rest coming from complete machine contract manufacturing. Currently, the main customers are domestic, while actively negotiating with leading humanoid Siasun Robot & Automation manufacturers in North America. As for the liquid cooling business, management predicts a revenue target of 300 million RMB for the 2026 fiscal year, covering the fields of AIDC, energy storage, and SOFC, with multiple products already having orders.