[ET Net News Agency, 15 November 2019] Goldman Sachs initiated coverage on Minth Group
(00425) with a "buy" rating and a target price of HK$33.5.
The research house views Minth, China's leading niche auto interior/exterior parts
supplier and a global early-mover in aluminum (AL) parts, as the biggest beneficiary of
the light-weighting trend (an undervalued yet cost-effective solution for fuel economy).
Tapping the US$10bn AL parts TAM (total addressable market), Minth targets to double its
global market share to 33% in 2025, at which time the AL revenue contribution doubling
from 26% in 2018.
Goldman expects AL (due to higher ASP/margin opportunities) to drive long-term content
upgrades and earnings growth for Minth. (KL)