[ET Net News Agency, 19 January 2018] Nomura lifted its target price for Minth Group
(00425) to HK$55.3 from HK$51.5, and maintained its "buy" rating.
The research house slightly lowered its FY2017-19 gross margins forecasts by an average
0.3ppt, despite an improving yield rate in the new factories, to reflect the impact of:
(1) rising raw material costs in steel and aluminium, (2) a strengthening CNY versus USD,
and (3) widening product discount when OEMs have in general targeted quick savings in 4Q
2017.
While these have turned out be below Nomura's expectation, it said this key financial
indicator should still hover at a healthy level of 34% in FY2017 and 35% in FY2018. This
is consistent with management's initial internal target guidance and should be much driven
by further improvement in yield rate and lower packaging wastes. (KL)