[ET Net News Agency, 7 October 2020] UOB Kay Hian initiated coverage on Minth Group
(00425) with a "buy" rating and a target price of HK$45.
The research house said Minth is a primary beneficiary of automobile lighting,
electrification and automation trends due to (a) its leadership in manufacturing
lightweight exterior auto parts; (b) burgeoning new business of EV battery housing; and
(c) partnership with Hella for the manufacturing of radomes.
UOBKH expects Minth's EPS growth to reverse from -58% in 1H to 10%, 63% and 18% in 2H
2020, 2021 and 2022 respectively. It projected 2020-22 net profits at Rmb1,251m (-26%
yoy), Rmb2,043m (+63% yoy) and Rmb2,403m (+18% yoy) respectively. (KL)