Core Viewpoint - Daiwa has reiterated a "Buy" rating for Minth Group (00425) and raised the target price from HKD 40 to HKD 52, reflecting a 4% to 5% increase in net profit forecasts for this year and next year due to positive business updates [1] Group 1: Business Performance - The sales volume of electric vehicles in Europe increased by approximately 30% last year, reaching 3 million units [1] - Germany has reinstated national subsidies for electric vehicle purchases for low- to middle-income families, which is expected to drive strong double-digit growth in electric vehicle sales in Europe this year [1] - Currently, 70% of the battery casing orders for Minth Group come from European customers [1] Group 2: Market Insights - According to Global Market Insights, the global liquid cooling system market for data centers is projected to reach USD 6 billion this year and grow to USD 12 billion by 2030 [1] - Minth Group is expected to capture a market share of 3% to 5% in the value chain from 2026 to 2030 [1]

Group 1 - The core viewpoint of the article is that the recent electric vehicle subsidies introduced by Germany are likely to act as a catalyst for the business of Sensata Technologies, a leading battery casing supplier in Europe [1] - The report from Credit Lyonnais expresses low concerns regarding the rise in aluminum prices, predicting that the gross margins for aluminum products will have greater buffer space due to new orders and leverage effects [1] - Credit Lyonnais forecasts comprehensive growth in Sensata's three core markets this year: continuous expansion of electric vehicle sales in Europe, enhanced competitiveness of joint ventures in China, and increased production capacity in North America driven by tariff policies [1] Group 2 - Credit Lyonnais has raised its target price for Sensata from HKD 36 to HKD 43, maintaining an "outperform" rating [1] - Additionally, Daiwa has also raised its target price for Sensata to HKD 52 and increased net profit forecasts for this year and next [1]

Core Viewpoint - The report from Daiwa highlights positive business updates for Sensata Technologies, particularly in light of Germany's reinstatement of subsidies for low- and middle-income households purchasing electric vehicles, which is expected to drive strong growth in electric vehicle sales in Europe this year [1] Group 1: Business Updates - Germany has resumed national subsidies for electric vehicle purchases for low- and middle-income families, which is anticipated to contribute to a double-digit growth in electric vehicle sales in Europe this year [1] - Sensata Technologies derives 70% of its battery casing orders from European customers, positioning the company favorably in the growing electric vehicle market [1] Group 2: Market Insights - According to Global Market Insights, the global data center liquid cooling systems market is projected to reach $6 billion this year and grow to $12 billion by 2030 [1] - Sensata is expected to capture a market share of 3% to 5% in the value chain from 2026 to 2030, indicating potential growth opportunities in this sector [1] Group 3: Financial Projections - Daiwa has reiterated a "Buy" rating for Sensata, raising the target price from HKD 40 to HKD 52 [1] - The net profit forecasts for this year and next year have been increased by 4% to 5% to reflect the incremental changes in the business [1]

Group 1 - Morgan Stanley increased its stake in Minth Group (00425) by acquiring 4.106395 million shares at a price of HKD 39.4901 per share, totaling approximately HKD 162 million [1][3] - Following the acquisition, Morgan Stanley's total shareholding in Minth Group reached approximately 71.9977 million shares, representing a holding percentage of 6.09% [1][3]

| 原格廠 | 大股東/董事/最高行政人員名稱 作出披露的 買入 / 賣出或涉及的股每股的平均價 | | | | 持有權益的股份數目 | 佔已發行的 有關事件的日 | | --- | --- | --- | --- | --- | --- | --- | | | 元堂(三 | | | | (請參閱上述*註解)有投票權股(日/月/年) | | | | | | | | | 份高分比 | | . CS20260128E00205 | JPMorgan Chase & Co. | 1101(L) | 4,106,395(L | HKD 39.4901 | 71,997,687(L) | 6.09(L)23/01/2026 | | | | | | | 6,643,739(S) | 0.56(S) | | | | | | | 17,245,373(P) | 1.45(P) | 格隆汇1月28日丨根据联交所最新权益披露资料显示，2026年1月23日，敏实集团(00425.HK)获JPMorgan Chase & Co.以每股均价39.4901港元增持好仓410.64 万股，涉资约1.62亿港元。 增持后，JPMorgan ...

香港联交所最新数据显示，1月23日，摩根大通增持敏实集团(00425)410.6395万股，每股作价39.4901港 元，总金额约为1.62亿港元。增持后最新持股数目约为7199.77万股，持股比例为6.09%。 ...

智通财经APP获悉，香港联交所最新数据显示，1月23日，摩根大通增持敏实集团(00425)410.6395万 股，每股作价39.4901港元，总金额约为1.62亿港元。增持后最新持股数目约为7199.77万股，持股比例 为6.09%。 ...

Investment Rating - The investment rating for the automotive and automotive parts industry is "Positive" and maintained [6]. Core Insights - The German government plans to restart the electric vehicle (EV) subsidy policy that was suspended in 2023, with a total budget of €3 billion (approximately ¥24 billion), aimed at boosting the domestic automotive industry and accelerating the green transition [2][4][18]. - The subsidy will provide between €1,500 and €6,000 for eligible low- to middle-income families purchasing new energy vehicles priced below €45,000, effective from January 1, 2026, until 2029 or until funds are exhausted [18]. - The expected impact of the subsidy is to significantly increase the penetration rate of new energy vehicles in Germany, with projections indicating that at least 500,000 vehicles will be subsidized, accounting for approximately 29.5% of the expected new energy vehicle sales in 2025 [18][21]. Summary by Sections Event Description - On January 19, the German government announced the restart of the EV subsidy policy, with a total budget of €3 billion, to enhance the penetration of new energy vehicles in the market [4][18]. Market Performance - The report indicates that the penetration rate of new energy vehicles in Germany is expected to rise significantly due to the subsidy, with a projected 84,700 new energy vehicles sold in 2025, representing a year-on-year growth of 48.3% [13][18]. - The overall new energy vehicle sales in Europe are projected to reach 3.9 million units in 2025, with a year-on-year increase of 32.7% [13][18]. Implications for Domestic Companies - The subsidy is expected to benefit domestic companies such as BYD, Leapmotor, and SAIC, as many of their models are priced below €45,000 [30]. - The increase in new energy vehicle penetration in Europe is anticipated to positively impact the performance of domestic component manufacturers and vehicle producers operating in the European market [30].

Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The report indicates a transition from "stable volume and slow price" to "price increase and stable volume" for the automotive industry in 2026 [6][16] - The domestic demand for passenger vehicles is expected to show positive growth in 2026, supported by policies such as scrapping and replacement subsidies [27][28] - The report highlights that the average selling price (ASP) of passenger vehicles is projected to increase, with a notable rise in ASP observed in December 2025 [16][20] Summary by Sections 1. Passenger Vehicle Sales and Market Dynamics - In December 2025, domestic passenger vehicle sales reached 2.278 million units, a year-on-year decrease of 16.4% but a month-on-month increase of 13.6% [16] - The total sales for 2025 were 23.052 million units, reflecting a slight year-on-year increase of 0.6% [16] - The report notes that December's performance was significantly below seasonal norms, attributed to the suspension of scrapping subsidies in some regions [16] 2. ASP Trends and Market Expectations - The ASP for passenger vehicles in 2025 showed a year-on-year decline of 2.1%, with December 2025 ASP increasing by 13.7% compared to the previous year [16][20] - The report anticipates that the continuation of scrapping policies will enhance the sales of mid-to-high-end vehicles, contributing to price increases [27] 3. Inventory and Supply Chain Considerations - As of December 2025, the inventory of passenger vehicles stood at 4.708 million units, with a dynamic inventory-to-sales ratio of 2.48 [40] - The report suggests that short-term inventory risks are manageable, as leading domestic manufacturers may adjust production based on current demand [40] 4. Investment Recommendations - The report recommends focusing on various companies within the passenger vehicle supply chain, including Geely, BYD, and Xpeng Motors for growth potential [6][27] - It also highlights companies like Great Wall Motors and SAIC Group as having potential turning points in their performance [6][27]

Investment Rating - The report provides a "Buy" rating for several companies in the automotive sector, indicating an expected performance that will exceed the market by more than 10% over the next 12 months [5][22]. Core Insights - The change in subsidy policies has led to the disappearance of the tail effect in Q4 2025, resulting in a reduction of demand overdraw for 2026. In December 2025, the number of insured vehicles was 2.278 million, down 16.4% year-on-year but up 13.6% month-on-month. The total number of insured vehicles for the year reached 23.047 million, a slight increase of 0.6% year-on-year, with the penetration rate of new energy vehicles rising to 54.0%, an increase of 7.1 percentage points year-on-year [4][7][16]. Summary by Sections 1. Changes in Subsidy Policies - The report highlights that the changes in subsidy policies have caused consumers to adopt a wait-and-see approach, leading to a decrease in demand overdraw for 2026. The expectation is that as replacement subsidy application channels open, pent-up demand will materialize, and the domestic terminal market will trend towards "price increase and stable volume" [4][7]. 2. PHEV Market Share Tracking - The focus is on the performance of PHEV market shares, particularly for BYD and Geely, as the "mid-level assisted driving equity" leads to share differentiation. The report emphasizes the importance of monitoring configuration adjustments and terminal discount changes to understand further market share differentiation [9][16]. 3. Recent Report Insights - The report notes that the passenger vehicle inventory saw a slight reduction in December 2025, with an estimated 1.5 million vehicles in demand waiting to be fulfilled. The overall industry theme for 2025 was "emerging from deflation," with a judgment of "stable volume and slow price increase" being validated. The outlook for 2026 remains "price increase and stable volume," differing from market consensus due to regulatory changes and risk-return assessments [16][17]. 4. Investment Recommendations - The report suggests a "shelf-style" investment approach, recommending various companies across the passenger vehicle chain. Right-side targets include Geely, BYD, and others, while left-side targets include Great Wall Motors and Changan Automobile. In the commercial vehicle chain, recommended companies include China National Heavy Duty Truck Group and Weichai Power [17].