Summary of Minth (0425.HK) Analyst Briefing Company Overview - Minth is a leading global supplier of auto parts, particularly in body structural parts, trims, and decorative parts, with approximately 10% global market share in core products, producing over 30 million units annually [doc id='16'][doc id='17']. Industry Insights - The company is focusing on the electric vehicle (EV) market, particularly in battery housing, which is expected to be a major growth driver in the near term, alongside eVTOL (electric Vertical Take-Off and Landing) and robotics, which are anticipated to contribute from 2027 onwards [doc id='1'][doc id='4']. Key Financial Metrics - Target price raised from HK$32.0 to HK$38.0, reflecting a 21.5% expected share price return and a total expected return of 24.0% [doc id='1'][doc id='7']. - Revenue and net profit (NP) guidance for 2025 remains unchanged, with expectations of double-digit growth [doc id='2']. Battery Housing Growth - **Europe**: Projected battery housing revenue to grow at a 23% CAGR from Rmb3.2 billion in 2024 to Rmb11.2 billion by 2030, driven by strong EV sales. In 1H25, 8 out of the top 15 EVs in Europe were equipped with Minth's battery housing [doc id='3']. - **China**: Expected revenue growth of 20% CAGR from Rmb2.1 billion in 2024 to Rmb6.3 billion by 2030, supported by new orders amid stricter safety standards. Significant orders received from Changan (3 million units, Rmb1.2 billion) and BYD (500,000 units, Rmb300 million) [doc id='3']. eVTOL and Robotics - Minth has begun small-scale deliveries of eVTOL core parts and robotics products, with expectations for gradual scale contribution starting in 2027 [doc id='4']. Domestic Revenue Trends - Decline in domestic revenue attributed to market share loss from joint venture (JV) brands, with revenue mix from JV brands decreasing from 31% in 1H23 to 19% in 1H25. New battery housing orders from Chinese brands indicate a positive trend for future growth [doc id='5']. Earnings Summary - 2023A NP: Rmb1,903 million, with a diluted EPS of Rmb1.654, showing a 26.9% growth. Expected NP for 2025E is Rmb2,746 million with a diluted EPS of Rmb2.377 [doc id='6']. Operational Guidance - Operating expenses (Opex) as a percentage of revenue expected to remain flat or slightly decrease year-over-year. Capital expenditure (Capex) for 2025 is projected at Rmb2 billion, with improved cash flow anticipated [doc id='2']. Risks and Considerations - Key risks include potential RMB appreciation affecting gross profit margins, aluminum price hikes impacting production costs, and overall market conditions in the PV sector [doc id='19']. - Management indicated that Euro appreciation could improve gross margins by 0.1-0.3 percentage points for every 5-10% increase [doc id='9']. Conclusion - Minth is positioned for growth in the EV sector, particularly through battery housing, with a strong outlook for future revenue and profit growth. The company maintains a positive long-term view on its eVTOL and robotics segments, while managing risks associated with currency fluctuations and material costs [doc id='1'][doc id='17'].