[ET Net News Agency, 22 March 2018] Nomura trimmed its target price for Minth Group
(00425) to HK$48 from HK$55.3, and reiterated its "buy" rating.
The research house cited management at the analyst briefing explaining the high SG&A
expenses were initial investments which are necessary for business expansion in
Mexico/Huai'an, production automation and talent retention for new product development.
Although these expenses would continue to drag on earnings in FY2018, cost pressure
would be partly mitigated by incremental revenue contribution from new products in
aluminium battery packs and camera modules by end-2018 or early-2019, Nomura said.
To reflect the above, along with a 1.3pp increase in our SG&A to sales ratio, Nomura cut
its FY2018/19 gross margin assumption by an average of 0.3pp, leading to an average 9% cut
in its net profits assumption. (KL)
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00425 MINTH GROUP
Nominal 
12.900 -0.300 (-2.273%) Others
22/03/2018 16:56
[I-bank focus]Nomura trims Minth Group (00425) to HK$48
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