MINTH GROUP(425.HK)：SOLID GROWTH OUTLOOK FROM BATTERY HOUSING ROBOTICS AND AIDC

Core View - Minth is expected to achieve solid earnings in 2H25, with a projected FY25 net profit increase of 17% YoY, driven by growth in battery housing and contributions from new businesses such as humanoid robot parts and AI server liquid cooling systems [1]. Revenue and Profit Forecasts - The revenue forecast for Minth in 2H25 has been revised up by 1% to RMB13.7 billion, reflecting a 13% YoY increase, primarily due to higher expected revenue from aluminium and battery housing businesses amid rising raw material prices [2]. - The net profit forecast for 2H25 has been increased by 3% to RMB1.4 billion, representing a 14% YoY growth, while the gross profit margin (GPM) is maintained at 29.1% [2]. Tariff and Margin Risks - The impact of US tariffs on Minth's margins is considered manageable, as less than 4% of its revenue is exposed to the additional 25% tariff effective from May 2025, and products from its Mexico plant are exempt from these tariffs [3]. New Business Contributions - New businesses are anticipated to start making significant revenue contributions from FY27, with battery housing expected to grow rapidly in FY26. NEV sales in Europe are projected to rise by 16% YoY in 2026, benefiting Minth's battery housing segment [4]. - Revenue from new components for humanoid robots and AI server liquid cooling systems is expected to exceed RMB1 billion in FY27, along with additional contributions from door sealing systems and other new businesses projected to exceed RMB0.5 billion [4]. Valuation and Target Price - The target price for Minth has been raised from HK$38.00 to HK$42.00, maintaining a BUY rating based on a 13x multiple of the revised FY26 EPS [5].