Investment Rating - Buy rating maintained for Minth Group (0425 HK) with a current stock price of HKD 12 36 as of March 28 2024 [3] Core Views - Minth Group achieved revenue of RMB 20 52 billion in 2023, up 18 6% YoY, with net profit attributable to shareholders of RMB 1 9 billion, up 26 8% YoY [4] - Domestic revenue accelerated in H2 2023, reaching RMB 5 87 billion, up 4 6% YoY and 25 1% QoQ, accounting for 54 4% of total revenue [4] - Overseas revenue in H2 2023 was RMB 4 91 billion, up 10 4% YoY but down 2 9% QoQ, driven by battery box business expansion in Europe and overall growth in North America [4] - Gross margin improved to 28 4% in H2 2023, up 1 8 ppts YoY and 2 1 ppts QoQ, with battery box gross margin at 21 0%, up 1 9 ppts YoY and 3 1 ppts QoQ [4] - Net profit attributable to shareholders in H2 2023 was RMB 1 02 billion, up 20 5% YoY and 14 5% QoQ, with a net margin of 9 4%, up 1 0 ppts YoY and 0 3 ppts QoQ [4] Business Highlights - Minth Group has a comprehensive layout in battery box technology, securing projects from traditional automakers, new energy vehicle makers, and battery manufacturers, including a new PHEV integrated die-casting battery box project [5] - The company successfully mass-produced its first intelligent light-emitting bumper and intelligent electric side door system in 2023, with plans to focus on front and rear face assemblies, door assemblies, and body structural components in 2024 [5] - Domestic customer base expanded significantly, with orders from BYD for traditional products and battery boxes, and new innovative product orders from Geely, GAC Aion, Li Auto, XPeng, and NIO [5] - The company is entering a harvest period for its battery box business, with global expansion and improved capacity utilization expected to drive further profit growth [5] - Forecasted net profit attributable to shareholders for 2024-2026 is RMB 2 41 billion, RMB 3 03 billion, and RMB 3 69 billion, respectively, with corresponding P/E ratios of 5 4X, 4 3X, and 3 5X [5] Industry Context - Global automotive sales in H2 2023 increased by 10 1% YoY, with Japanese, German, and American brands growing by 6 1%, 5 7%, and 3 5%, respectively [4] - Minth Group's revenue in H2 2023 was RMB 10 72 billion, up 7 2% YoY and 10 6% QoQ, driven by growth in battery boxes, plastic parts, aluminum parts, and metal and decorative parts [4]
年报点评：国内业务加速成长，利润率提升优异