Minth Group (MNTHF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst on March 25. Analyst Ji Shi from CMB International Securities maintained a Buy rating on the stock and has a HK$26.00 price target.
Ji Shi’s rating is based on Minth Group’s potential for sustained revenue and profit growth, despite a mixed performance in the second half of 2024. The company’s operational efficiency has improved significantly, as evidenced by reduced net debt, lower capital expenditures, and a substantial increase in free cash flow. These factors are expected to enhance future margins and allow for a higher dividend payout ratio.
Furthermore, Ji Shi anticipates considerable revenue growth from 2025 to 2027, driven by the rapid expansion of the battery housing segment and the introduction of new products. The battery housing margins are projected to improve further as capital expenditures decrease. Additionally, the development of new products such as door sealing systems and integrated intelligent exteriors is expected to contribute to revenue growth. These positive outlooks underpin the Buy rating, with an increased target price reflecting the company’s promising future prospects.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a HK$30.00 price target.