Jefferies: The robot and liquid cooling business progressed in an orderly manner at the target price of HK$47.7 for the Shengminshi Group (00425)

The Zhitong Finance App learned that Jefferies released a research report saying that it raised the target price of Minshi Group (00425) to HK$47.7. The company's gross margin for the first half of the year was resilient, and the robotics and liquid cooling business progressed in an orderly manner. Management reiterated the full-year double-digit growth guide. Revenue from emerging businesses was approximately RMB 100 million in the first half of the year, with robots and liquid cooling contributing 70% and 30% respectively. Management maintains a revenue target of 800 million yuan for emerging businesses for the year.

Jefferies pointed out that Minshi Group began delivering robot components in June, and integrated robot ODM production also began in June. It is expected to contribute about 300 million yuan in revenue in the second half of the year. The management mentioned that it recently received an order for a mask from one of the top three robot customers in the US, and other structural parts are in the final price review stage. Minshi Group's liquid cooling products cover cold plate modules, CDU, immersion cooling cabinets, manifolds and BBU. The manifolds have been certified and ordered by Cooler Master suppliers, the CDU has completed customer testing and obtained UL certification, and the cold plate, immersion cooling cabinet and BBU are undergoing customer testing or third-party certification.