Group 1 - Morgan Stanley has downgraded the earnings forecast for Minth Group (00425) for the fiscal years 2026 and 2027 by 7% to 8%, and reduced the target price from HKD 70 to HKD 60, while maintaining an "Overweight" rating, reaffirming Minth as a preferred stock in the Chinese automotive parts sector [2] - The management of Minth attributed the lower-than-expected gross margin in the second half of last year to one-off factors and anticipates growth in revenue and net profit for this year [2] - Management has raised the revenue guidance for new business segments for 2026 to 2027, including humanoid robots and AI server liquid cooling [2]

Group 1 - The investment rating for the company is maintained as "Overweight" [1] - The target price has been adjusted from HKD 70 to HKD 60, reflecting a downward revision of earnings estimates for FY2026 and FY2027 by 7% to 8% [1] - The report identifies the company as a preferred stock within the Chinese automotive parts sector [1] Group 2 - The management attributed the lower-than-expected gross margin in the second half of last year to one-off factors and anticipates growth in revenue and net profit for this year [1] - The management has raised the revenue guidance for new business segments for FY2026 and FY2027, including humanoid robots and AI server liquid cooling [1]

Core Viewpoint - Sany International (00631) has seen a significant stock price increase of over 60% in the past month, with a current rise of 3.54% to HKD 15.52, supported by a trading volume of HKD 73.91 million [1] Industry Insights - According to a report from Credit Lyonnais, three key drivers are emerging in the Chinese industrial sector amid ongoing anti-involution policies: increased demand for mining equipment, maturity of humanoid robot supply chains, and consolidation in the express delivery industry [1] - The report anticipates a continued equipment replacement cycle, alongside record investments in power grids and renewable energy, which are expected to drive excavator sales growth by approximately 10% [1] Company Performance - CMB International believes that Sany International's mining truck business will continue to progress, contributing 15% to 16% of total revenue between 2026 and 2027, with high growth expected for large mining trucks that have higher value and profit margins [1] - The firm also notes that due to an order backlog exceeding 12 months, revenue growth and profit margin improvement in the large port machinery business are highly certain [1]

Group 1 - The core viewpoint of the report is that the Chinese industrial sector is experiencing three key driving forces due to the ongoing anti-involution policies, including rising demand for mining equipment, maturity of humanoid robot supply chains, and consolidation in the express delivery industry [1] - The report anticipates that the equipment replacement cycle will continue, along with record investments in power grids and renewable energy, which will drive excavator sales growth by approximately 10% [1] - The first-tier suppliers' overseas factories are ready to commence mass production of humanoid robots in the second half of the year; additionally, strong performance and price increases in the lithium-related sector are expected to lead to a year-on-year recovery in automation demand of about 5% [1] Group 2 - The company prefers firms with stable core businesses or those in recovery that can benefit from emerging driving forces; top stock picks include Hengli Hydraulic (601100), Sany Heavy Industry (600031), Sany International (00631), and Jitu Express-W (01519) [1] - Among these, Hengli Hydraulic is rated as "highly confident to outperform the market," while the other stocks are rated as "outperform the market" [1]

Core Viewpoint - Morgan Stanley maintains an "Overweight" rating and a target price of HKD 59 for Delta Electronics Holdings (00179), despite a mixed performance in recent operational data [1] Financial Performance - Delta's revenue for the first three fiscal quarters ending December remained flat year-on-year, but the third fiscal quarter saw a 2% increase to USD 893 million, indicating a gradual recovery [1] - The revenue growth in the third quarter was slightly below Morgan Stanley's expectations, primarily due to the slower-than-expected project initiation by Chinese automotive companies [1] Business Segments - The industrial products segment continues to outperform due to structural market share growth [1] - Limited data disclosure regarding humanoid robots and AI data center cooling businesses adds uncertainty to short-term visibility [1] - The recovery speed of the automotive products business remains uncertain, impacting short-term outlook [1]

Core Viewpoint - Morgan Stanley maintains an "Overweight" rating and target price of HKD 59 for Delta Electronics Holdings (00179) despite a mixed operational update [1] Group 1: Financial Performance - Delta Electronics reported that revenue for the first three fiscal quarters remained flat year-on-year, but third-quarter revenue increased by 2% to USD 893 million, indicating a gradual recovery [1] - The revenue growth in the third quarter was slightly below Morgan Stanley's expectations, primarily due to the slower-than-expected project initiation by Chinese automotive companies [1] Group 2: Business Segments - The industrial products segment continues to perform well due to structural market share growth [1] - Limited data disclosure regarding humanoid robots and AI data center cooling businesses, along with uncertainty in the recovery speed of the automotive products segment, restricts short-term visibility [1]

Core Viewpoint - Daiwa has initiated a "Buy" rating for Yuejiang (02432) with a target price of HKD 65.5, believing the company will become a competitive player in the humanoid robot sector, leveraging its leadership in the collaborative robot (cobot) market to gain a competitive edge and drive long-term revenue growth [1] Group 1 - The report indicates that according to Yuejiang's management guidance, the company can achieve breakeven once its revenue reaches USD 100 million [1] - Daiwa expects the company to benefit from an increase in collaborative robot sales and stable gross margins, projecting that net losses will narrow to approximately RMB 10 million by 2026, bringing the company closer to breakeven [1]