Changes in Hong Kong stocks | Minshi Group (00425) fell more than 3%. Institutional estimates that the increase in aluminum prices will have an impact on the company's gross margin, and the battery case business is expected to drive overall revenue growth

The Zhitong Finance App learned that Minshi Group (00425) fell by more than 3%. As of press release, it was down 3.12% to HK$26.68, with a turnover of HK$53.434 million.

According to the news, Deutsche Bank released a research report stating that despite the rise in prices of raw materials such as aluminum, according to past performance, Minshi Group has the ability to control the related impact of fluctuations in raw material prices. The gross margin of the aluminum business will still rise from 32.6% to 34% during the period of rising aluminum prices from 2020 to 2022. Management also expects that the recent rise in aluminum prices will have limited impact on overall gross margin in 2026.

Deutsche Bank added that the European NEV market showed strong performance in half a year. In the first half of the year, new vehicle registrations in Europe increased by more than 6%, with pure electric vehicles surging 35% year over year. Considering that most of Minshi Group's customers are European car manufacturers, it is expected that its aluminum battery case business is highly correlated with European electrification trends. As European NEV sales increase, it is estimated that Minshi's battery case business revenue in the first half of the year could increase 33% year-on-year, driving overall revenue growth of 9% year-on-year.