Citigroup initiates a 90-day upward catalyst observation on MINTH GROUP in "The Big Banks"

Citi published a report, initiating a 90-day upward catalyst observation for MINTH GROUP (00425.HK). The target price is HKD 46, with a rating of "Buy."

The report indicates that large-scale deliveries of AI liquid cooling products likely began in January, and MINTH is expected to further secure orders in the AI liquid cooling sector. Additionally, the bank believes that the reintroduced subsidy policy in Germany may bring upward risks to MINTH's sales in Europe.

Other catalyst factors include manageable impacts from rising aluminum prices; limited effects from increased tariffs in Mexico, estimated to involve about USD 1 million by 2026; revenue contribution of approximately RMB 100 million from the robotics business in 2026; attractive valuation with a dividend yield of 3.8% and a payout ratio of 40%