CMB International: Lowering Minshi Group's (00425) Target Price to HK$42 to Maintain “Buy” Rating

The Zhitong Finance App learned that CMB International released a research report stating that it maintained Minshi Group's (00425) “buy” rating and lowered the company's target price by 4.5% from HK$44 to HK$42. The bank said that in the first half of 2026, Minshi Group's revenue bucked the trend and increased 9.1% to 13.4 billion yuan; as overseas revenue growth was 14.9 percentage points higher than domestic revenue, gross margin increased 0.3 percentage points year on year to 28.6%; net profit increased 12.3% year on year, and the net interest rate of 10.7% hit a new high since the second half of 2021.

CMB International said that in the first half of the year, Minshi Group's overseas revenue accounted for 68.1%, but almost all of its current overseas revenue came from non-Chinese car companies. In its 2024 report, the bank predicted that Minshi Group is expected to become one of the preferred suppliers for Chinese car companies for localized production in Europe. This investment logic is being realized: the company has received orders from BYD shares (01211), Geely Auto (00175), and Changan overseas factories, and there is still plenty of room for overseas revenue to increase.

In addition, new businesses such as robotics and AIDC infrastructure contributed about 100 million yuan in revenue in the first half of the year, and management maintained confidence in the annual target of 800 million yuan. Based on the above factors, the bank fine-tuned the company's net profit forecast for the 2026-2028 fiscal year to 30/36/4.2 billion yuan.