UBS: Lowering Minshi Group's (00425) target price to HK$41 to maintain “buy” rating

The Zhitong Finance App learned that UBS released a research report stating that the target price of Minshi Group (00425) was lowered from HK$45.5 to HK$41 to maintain the “buy” rating; Minshi Group management reiterated its 2026 double-digit year-on-year revenue and net profit growth guidelines, and the target operating profit increased by about 20% year on year.

The bank pointed out that sensitive and emerging businesses, mainly humanoid robots and liquid cooling, continue to make steady progress. Management has guided European battery case order momentum to remain strong, and the past two years have continued to win orders from Japanese and Korean automakers in Europe and the US, so we should further diversify our customer base and geographical exposure. By 2030, the company aims to have a roughly balanced revenue mix between China, Europe and North America, with each region contributing approximately 30%.

The bank pointed out that Minshizheng is developing robots, liquid cooling and battery energy storage systems as potential medium- to long-term growth drivers. In terms of robots, the combination covers structural components, masks and joint modules, and complete robot contract manufacturing. In terms of liquid cooling, Minshi's subsidiary United Alloy-Tech has recently been approved as an approved supplier by Cooler Master. The latter is a leading global thermal management solution provider with exposure to the liquid cooling supply chain for Nvidia (US.NVDA) artificial intelligence servers, and mass shipments are expected to begin soon. Using its expertise in electric vehicle battery housings and structural components, Minshi is also expanding into battery energy storage systems, and has received initial orders from Chinese customers to supply its North American production plant. The business sees this as an early milestone in the new business.