UBS: Minshi Group's (00425) battery case business beat expectations and raised the target price to HK$31.5

The Zhitong Finance App learned that UBS released a research report stating that based on the discounted cash flow model (the weighted average cost of capital remained unchanged at 11%), the target price of Minshi Group (00425) was raised to HK$31.5. The original target price was HK$30.5, with a rating of “buy.” UBS also indicated that since Minshi Group's battery case business development was better than expected, it raised its profit forecast for 2025 to 2027 by 2% to 4%.

UBS said that due to strong sales of electric vehicles in Europe, Minshi Group's battery case revenue increased by about 50% year on year in the first five months of this year, and gross margin increased to about 22% year on year; overall revenue increased by about 13% year on year, and net profit increased by about 20% year on year. The situation is encouraging. Furthermore, the Group has received orders for various Xiaomi car models. It is expected that the CPV (customer product value) of Xiaomi models will increase, and the debt ratio and debt structure for the first five months of this year will be optimized.

The report mentioned that with its technical advantages in the field of automotive plastic parts and intelligent appearance, Minshi Group is developing three types of humanoid robot products: 1) airframe structural parts and joint assembly; 2) smart skin/mask; and 3) wireless charging. The company mainly provides sample products to Chinese humanoid robot manufacturers, and plans to strengthen communication with overseas manufacturers. For eVTOL (electric vertical take-off and landing aircraft), the company is mainly involved in airframe structural parts and rotors, and is expected to receive orders in the third quarter of 2025.