[ET Net News Agency, 4 December 2018] Morgan Stanley lowered its target price for Minth
Group (00425) to HK$37 from HK$43 and maintained its "overweight" rating.
The research house cut its 2018/19/20 earnings forecasts for Minth by 3%, 10%, and 11%.
It mainly reflects cuts to revenue due to slower China auto growth and lower margins due
to increasing pricing competition.
Morgan remains positive on the stock for its strong overseas sales growth in 2019 driven
by new project launches, including Mercedes and good exposure to Japanese brands that
enjoy above-industry growth in China amid the downcycle. (KL)