Core Viewpoint - The company is accelerating its global expansion in the robotics sector through strategic partnerships, with a focus on humanoid robot joint modules and battery box business, which is expected to see significant growth due to rising demand in Europe [1][3]. Group 1: Robotics Business Expansion - On February 9, 2026, the company signed a framework agreement with Green Harmonic to establish a joint venture in the U.S. for humanoid robot joint module assembly, with a 60% stake for the company and a 40% stake for Green Harmonic, involving an investment of $10 million [1]. - In December 2025, the company entered a three-year strategic cooperation with a leading robotics firm in Europe for the production and distribution of general-purpose embodied intelligent robots [1]. - The company possesses global production capacity and industrialization capabilities, complemented by Green Harmonic's core technology in harmonic reducers, which is expected to meet local demand from North American robotics companies [1]. Group 2: New Business Developments - In the liquid cooling sector, the company's subsidiary Precision Industries received orders for immersion cooling cabinets and liquid cooling systems from a Taiwanese AI server manufacturer, with expected mass delivery by the end of 2025 [2]. - In the low-altitude economy sector, the company is strategically positioning itself in the eVTOL airframe and rotor system market, having signed a strategic cooperation agreement with EHang in July 2025, which includes production intent orders [2]. - The company granted 2.4 million shares of zero-cost stock options, with 820,000 shares directed towards core R&D personnel in new sectors such as robotics, AI, liquid cooling, and low-altitude economy, demonstrating its long-term strategic commitment [2]. Group 3: Battery Box Business Growth - The battery box business is entering a harvest phase, with global sales accelerating; in the first half of 2025, revenue reached 3.582 billion yuan, a year-on-year increase of 49.8%, with a gross margin of 23.0%, up 2.4 percentage points [3]. - The growth of the battery box business is significantly supported by the increasing penetration of new energy vehicles in Europe, with the company supplying 8 out of the top 15 best-selling EV models in Europe for the first half of 2025 [3]. - The company has also successfully expanded its chassis structural components, securing orders from major European automakers such as Toyota, General Motors, Great Wall, and Geely [3]. Group 4: Financial Forecast and Valuation - The company maintains its previous profit forecasts, expecting revenues of 27.8 billion yuan, 32 billion yuan, and 36.9 billion yuan for 2025-2027, with net profits of 2.85 billion yuan, 3.43 billion yuan, and 4.07 billion yuan respectively [3]. - Based on comparable company PE valuations, the company is assigned a PE of 15.2 times for 2026, with a target price of 49.71 HKD, and a corresponding U.S. stock target price of 127.13 USD [3].

Investment Rating - The investment rating for the company is maintained as "Buy" [6][5]. Core Views - The company is establishing a joint venture in the U.S. with Harmonic Drive to develop humanoid robot joint modules, marking a significant step in its global robotics business expansion. This follows a strategic partnership in Europe for manufacturing and supplying components [1][2]. - The company's traditional business is expected to maintain steady growth, with the battery box business accelerating globally. New strategic initiatives in robotics, AI, liquid cooling, and low-altitude economy are anticipated to enhance long-term growth potential [1][2]. - The battery box business is entering a harvest phase, with revenue of 3.582 billion RMB in the first half of 2025, reflecting a year-on-year increase of 49.8%. The gross margin for this segment is 23.0%, up by 2.4 percentage points [4]. - The company has secured significant orders in the liquid cooling sector and is strategically positioning itself in the low-altitude economy, including eVTOL systems [3]. - The company has set revenue forecasts of 27.774 billion RMB for 2025, 32.033 billion RMB for 2026, and 36.851 billion RMB for 2027, with net profits projected at 2.847 billion RMB, 3.430 billion RMB, and 4.070 billion RMB respectively [5][9]. Summary by Sections Joint Ventures and Strategic Partnerships - The company signed a framework agreement with Harmonic Drive to establish a joint venture in the U.S. for humanoid robot joint modules, with a 60% ownership stake and an investment of 10 million USD. This complements a previous partnership in Europe for manufacturing and distribution [1][2]. New Business Developments - The company is diversifying into multiple new business areas, including liquid cooling and low-altitude economy sectors, with strategic partnerships and orders already in place. A stock incentive plan has been implemented to support key personnel in these new ventures [3]. Financial Performance and Projections - The battery box business is experiencing significant growth, with a revenue increase of 49.8% year-on-year in the first half of 2025. The company is also benefiting from the rising penetration of new energy vehicles in Europe [4]. - The financial forecasts indicate a steady increase in revenue and net profit over the next few years, with a target price set at 49.71 HKD for 2026, corresponding to a PE ratio of 15.2 [5][9].

Investment Rating - The report maintains a "Buy" rating for the company [6][5]. Core Views - The company is establishing a joint venture in the U.S. with Harmonic Drive to develop humanoid robot joint modules, marking a significant step in its global robotics business expansion [1][2]. - The traditional business is expected to maintain steady growth, with the battery box business accelerating globally, and new strategic initiatives in robotics, AI, liquid cooling, and low-altitude economy potentially enhancing long-term growth prospects [1][3]. - The battery box business is entering a harvest phase, with revenue of 3.582 billion RMB in the first half of 2025, reflecting a year-on-year increase of 49.8% and a gross margin of 23.0% [4]. Summary by Sections Joint Venture and Global Expansion - On February 9, 2026, the company signed a framework agreement with Harmonic Drive to establish a joint venture in the U.S., with a 60% stake for the company and a 40% stake for Harmonic Drive, involving an investment of 10 million USD [2]. - The company has previously signed a strategic cooperation agreement with a leading robotics company for the European market, focusing on the production and distribution of general embodied intelligent robots [2]. New Business Developments - The company is diversifying into liquid cooling and low-altitude economy sectors, with significant orders from a global semiconductor company for liquid cooling cabinets and systems [3]. - A strategic partnership with EHang for eVTOL aircraft and rotor systems has been established, with intentions for mass production orders [3]. - The company has issued 2.4 million shares as part of a zero-cost equity incentive plan, targeting core R&D personnel in new strategic areas [3]. Financial Performance and Projections - The company expects revenues of 27.774 billion RMB in 2025, 32.033 billion RMB in 2026, and 36.851 billion RMB in 2027, with net profits projected at 2.847 billion RMB, 3.430 billion RMB, and 4.070 billion RMB respectively [9][5]. - The target price is set at 49.71 HKD for 2026, corresponding to a PE ratio of 15.2 times, and a target price of 127.13 USD for the U.S. market [5][6].

Core Viewpoint - Minth Group (00425) has seen a stock increase of over 7%, currently trading at HKD 33.76 with a transaction volume of HKD 140 million, driven by developments in liquid cooling technology [1] Group 1: Company Developments - Nvidia announced the launch of the Rubin platform at CES, which will feature a power consumption exceeding 200KW per cabinet, utilizing a 100% liquid cooling solution [1] - Minth Group's liquid cooling products include immersion cooling cabinets, CDU, liquid cooling plates, and manifolds, positioning the company to benefit from the growing demand for server liquid cooling solutions [1] Group 2: Industry Trends - The increasing energy requirements and higher cabinet power density are driving rapid development in server liquid cooling, with Minth Group leveraging its technology reserves in battery boxes and liquid cooling plates, along with global production capacity and long-term partnerships with leading server manufacturers [1] - Minth Group has already secured orders from AI server manufacturers, with deliveries expected to commence by the end of 2025 [1]

Core Viewpoint - Minth Group (00425) shares rose over 7%, currently at HKD 33.76 with a trading volume of HKD 140 million, driven by developments in liquid cooling technology [1] Group 1: Company Developments - Nvidia launched the Rubin platform at CES, featuring a single cabinet power consumption exceeding 200KW, utilizing a 100% liquid cooling solution [1] - The Rubin liquid cooling solution shows significant enhancements in cold plates, CDU, and Manifold compared to the GB series [1] - The design of the Manifold in the Rubin architecture has been modified with larger pipe diameters and integrated valves and sensors to improve stability and reduce leakage risks, indicating a higher level of integration and intelligence [1] Group 2: Industry Trends - The demand for energy efficiency and increased cabinet power density is driving rapid development in server liquid cooling [1] - Minth Group is leveraging its technology reserves in battery boxes and liquid cooling plates, along with global production capacity and long-term partnerships with leading server manufacturers, to quickly penetrate the server liquid cooling market [1] - The company has secured orders from AI server manufacturers, with deliveries expected to commence by the end of 2025 [1]

Investment Rating - The report assigns a "Buy" rating to the company, with a target price raised from 42 HKD to 50 HKD, corresponding to a projected P/E ratio of 15.2 times for 2026 [1][3][6]. Core Insights - The company is experiencing rapid growth in its battery box business, which is driving performance improvements and valuation increases. Emerging businesses are gradually taking shape, contributing to overall growth [1][3]. - The company has secured significant orders for liquid cooling products, including immersion cooling cabinets and other components, with mass production expected to begin soon. These products are aimed at major semiconductor clients [2][3]. - The company is also expanding into new business areas such as eVTOL and robotics, having established strategic partnerships and received production orders from leading firms in these sectors [3]. Financial Projections - The company is projected to achieve net profits of 2.76 billion RMB in 2025, 3.39 billion RMB in 2026, and 4.15 billion RMB in 2027, reflecting a strong growth trajectory [4][10]. - Revenue is expected to grow from 20.52 billion RMB in 2023 to 38.01 billion RMB in 2027, with a compound annual growth rate (CAGR) of approximately 20% [4][10]. - The gross margin is anticipated to improve slightly from 27.4% in 2023 to 29.5% in 2027, indicating enhanced operational efficiency [4][10].