In "The Big Banks," Citigroup: MINTH is likely to benefit from Germany's electric vehicle subsidies, raising the target price to 43 yuan

The report from Citigroup indicates that Germany's recent introduction of electric vehicle subsidies is likely to become a business catalyst for MINTH GROUP (00425.HK), a leading battery casing supplier in Europe. The firm also has lower concerns about rising aluminum prices, expecting that the gross profit margin for aluminum products will have greater buffer space due to new orders and leverage effects.

The firm predicts that MINTH's three core markets will experience comprehensive growth this year: continuous expansion of electric vehicle sales in Europe, enhanced competitiveness of joint ventures in China, and increased production capacity in North America driven by tariff policies.

Based on this year's earnings per share forecast, the target price is calculated, with a 0.8% downward adjustment to the net profit forecast due to the impact of aluminum prices on gross margins. However, due to the optimistic outlook for the European and Chinese markets, the target price-to-earnings ratio is raised from 11.5 times to 14 times, and the target price is increased from 36 yuan to 43 yuan, maintaining an "outperform" rating