Portfolio Manager, Tangible Asset Management

Jonathan Tanne CFA CA

Portfolio Manager

Tangible Asset Management

Equity Bottom-Up

How many public Chinese/HK listed companies do you know that have successfully gone global and grown into a global supplier without diluting bottom line earnings and margins ?  NOT MANY! But here's one...Minth is a large (&gt;US$3bn market cap) principally China-based auto component company, focussing on trims, decorative parts, and body structural parts, made of plastics, steel and also recently aluminium. Whilst these are largely just simple low value commodity products, over the years Minth has built a reputation for quality and reliability that is unmatched in China, and that has given it a real competitive edge which is very hard to replicate, as its business is based on multi-year relationships with the OEMs that take a long time to establish.

How many public Chinese/HK listed companies do you know that have successfully gone global and grown into a global supplier without diluting bottom line earnings and margins ?  NOT MANY! But here's one...Minth is a large (&gt;US$3bn market cap) principally China-based auto component company, focussing on trims, decorative parts, and body structural parts, made of plastics, steel and also recently aluminium. Whilst these are largely just simple low value commodity products, over the years Minth has built a reputation for quality and reliability that is unmatched in China, and that has given it a real competitive edge which is very hard to replicate, as its business is based on multi-year relationships with the OEMs that take a long time to establish. 

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>Aluminum is <a href="https://www.smartkarma.com/entities/minth-group-ltd" target="_blank" data-smartkarma-citation="entities:9232:1" rel="noopener">Minth Group Ltd (425 HK)</a> biggest raw material.</li>
<li>The war that spiked the commodity price does not show any sign of ending soon therefore margin contraction is expected. </li>
<li>Get out or short it if you are a hedgehog. </li>
</ul>


Aluminum is Minth Group Ltd (425 HK) biggest raw material.
The war that spiked the commodity price does not show any sign of ending soon therefore margin contraction is expected. 
Get out or short it if you are a hedgehog. 


China

Minth Group Ltd. manufactures exterior automobile body parts.  The Company produces structural body parts, decorative parts, and trim.  Minth supplies multinational automobile manufacturers operating in China.

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Minth Group Ltd (425 HK)

A Quality High ROE Business Going Global

How many public Chinese/HK listed companies do you know that have successfully gone global and grown into a global supplier without diluting bottom...

Jonathan Tanne CFA CA

Minth (425): Margin Contraction

aluminum price rose - a key raw material for Minth - has spooked investors as the outlook for the company's earnings has changed 180 degrees. It is...

Henry Soediarko

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