Daiwa raised the target price for MINTH GROUP to 52 yuan, reiterating "Buy"

Daiwa published a research report indicating that it has reviewed the earnings forecast for MINTH GROUP (00425.HK) and incorporated some positive business updates. Among them, last year, the sales volume of new energy vehicles in Europe increased by approximately 30%, reaching 3 million units. Since the beginning of this year, Germany has resumed national subsidies for new energy vehicle purchases for low- to middle-income families, which is expected to provide strong momentum for achieving mid-single-digit growth in new energy vehicle sales in Europe this year. Currently, 70% of the group's battery casing orders come from European customers.

Daiwa stated that according to data from Global Market Insights, the global liquid cooling system market for data centers may reach USD 6 billion this year and grow to USD 12 billion by 2030; it is expected that MINTH will gain a market share of 3% to 5% in the value chain between 2026 and 2030.

Daiwa reiterated the group's "Buy" rating; based on the sum-of-the-parts valuation method, it raised the target price from HKD 40 to HKD 52; it also raised the net profit forecasts for this year and next year by 4% to 5% to reflect the incremental changes in its business