China International Capital Corporation (CICI) has released a research report stating that MINTH GROUP (00425) recorded revenue growth of 10.8% year-over-year to RMB 12.3 billion in the first half of this year, broadly in line with expectations. European operations experienced rapid growth (up 51% year-over-year), driven by rising electric vehicle adoption rates, despite a relatively sharp decline in the Chinese market. CICI maintains a "Buy" rating and raises the target price from HK$25 to HK$35 (13x 2026 forecast P/E ratio).

To reflect downward revisions to domestic revenue forecasts, partially offset by upward revisions to European sales forecasts and better operational expense control, CICI modestly raises the group's 2025 net profit forecast by 2% to RMB 2.65 billion, while keeping the 2026 net profit forecast unchanged at RMB 2.9 billion. Its current valuation (11.7x 2026 forecast P/E) appears somewhat undervalued considering robust earnings growth and initiatives to participate in innovative businesses (namely humanoid robots and electric vertical takeoff and landing aircraft) as key drivers for the next wave of growth.

CICI combines MINTH's strict operational expense control to date this year with a modest 2% upward revision to the 2025 net profit forecast to RMB 2.66 billion, while keeping the 2026 net profit forecast essentially unchanged at RMB 2.9 billion.

In the near term, CICI expects the battery case business to continue as the main driver of MINTH's profit growth, particularly benefiting from rising new energy vehicle adoption rates in Europe, a broader OEM customer base, and sufficient local capacity deployment. Additionally, other traditional businesses are expected to maintain steady growth through product category expansion, broadening the global brand OEM customer base, and deepening penetration with domestic Chinese brands, effectively offsetting weak demand from joint venture brands in the Chinese market.