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

Equity Bottom-Up

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<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> revenue went up by 14% (almost 3x of China’s passenger vehicle market, which grew 5%) and net income by 20% on 1H 24</li>
<li>It has developed environmentally friendly collision aluminum, with a carbon emission of less than 2.5 kg CO2 /Kg.AL while typically it produces 16 CO2/kg.AL</li>
<li>Battery housing business contributed 21% instead of 18% of total revenue with OPM expanded from 18% to 20%. </li>
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Minth Group Ltd (425 HK) revenue went up by 14% (almost 3x of China’s passenger vehicle market, which grew 5%) and net income by 20% on 1H 24
It has developed environmentally friendly collision aluminum, with a carbon emission of less than 2.5 kg CO2 /Kg.AL while typically it produces 16 CO2/kg.AL
Battery housing business contributed 21% instead of 18% of total revenue with OPM expanded from 18% to 20%. 


Minth (425): Battery Housing as New Growth Driver

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Maintain BUY. Minth’s 1H24 net profit was in line with our forecast, coupled with strong free cash flow to cut its net debt level.</li><li>The company plans to buy back shares and resume dividend distribution for FY24. That could make its dividend yield attractive given its current low valuation.</li><li>Moreover, Minth’s earnings visibility becomes even better with its capex cuts and new business expansion, in our view.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain BUY. Minth’s 1H24 net profit was in line with our forecast, coupled with strong free cash flow to cut its net debt level.The company plans to buy back shares and resume dividend distribution for FY24. That could make its dividend yield attractive given its current low valuation.Moreover, Minth’s earnings visibility becomes even better with its capex cuts and new business expansion, in our view.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Minth Group (425 HK) - In-Line 1H24 with Better Earnings Visibility Ahead

<ul><li>Initiate with BUY and TP of HK$21.00. Minth Group (Minth) has been transforming from an exterior decorative parts maker to a more diversified tier1 supplier with manufacturing capabilities in different materials.</li><li>We are of the view that investors have probably underestimated Minth’s solid overseas foundation which is crucial for the upcoming trade risks, as its valuation has dropped to a historical-low level.</li><li>We also think battery housing and other new products such as chassis structural parts and intelligent integrated exteriors could lift Minth’s dollar content per car in the next few years, which is also an important driver for its profit growth.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Initiate with BUY and TP of HK$21.00. Minth Group (Minth) has been transforming from an exterior decorative parts maker to a more diversified tier1 supplier with manufacturing capabilities in different materials.We are of the view that investors have probably underestimated Minth’s solid overseas foundation which is crucial for the upcoming trade risks, as its valuation has dropped to a historical-low level.We also think battery housing and other new products such as chassis structural parts and intelligent integrated exteriors could lift Minth’s dollar content per car in the next few years, which is also an important driver for its profit growth.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Minth Group (425 HK) - Overseas Foundation to Withstand Trade Risks

Thematic (Sector/Industry)

<ul><li>We expect 3Q24 earnings of some leading Chinese automakers including BYD, Geely and Li Auto to rise substantially from 2Q24, which could beat investors’ expectation.</li><li>We expect Great Wall’s 3Q24 earnings to be resilient and at a similar level as 2Q24. Although both Xpeng and NIO launched competitive new models in 3Q24, we do not expect their net losses to narrow QoQ as the increase in gross profits may not be able to cover the R&amp;D and SG&amp;A expenses growth.</li><li>As valuation becomes less attractive now, we prefer automakers with more solid earnings, such as Geely and Li Auto. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We expect 3Q24 earnings of some leading Chinese automakers including BYD, Geely and Li Auto to rise substantially from 2Q24, which could beat investors’ expectation.We expect Great Wall’s 3Q24 earnings to be resilient and at a similar level as 2Q24. Although both Xpeng and NIO launched competitive new models in 3Q24, we do not expect their net losses to narrow QoQ as the increase in gross profits may not be able to cover the R&amp;D and SG&amp;A expenses growth.As valuation becomes less attractive now, we prefer automakers with more solid earnings, such as Geely and Li Auto. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto - 3Q Earnings Preview: Leading Players to Beat

<ul><li>We summarize the Sep 2024 price discounts at dealers for major automakers in this report.</li><li>Note that such discounts for each automaker are calculated based on the weighted average of Aug 2024 retail sales volume for each model, as Sep 2024 retail sales volume data have not been released yet.</li><li>The industrywide average discounts widened by 0.3ppts MoM in Sep, based on our calculations, mainly driven by German and Chinese brands. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We summarize the Sep 2024 price discounts at dealers for major automakers in this report.Note that such discounts for each automaker are calculated based on the weighted average of Aug 2024 retail sales volume for each model, as Sep 2024 retail sales volume data have not been released yet.The industrywide average discounts widened by 0.3ppts MoM in Sep, based on our calculations, mainly driven by German and Chinese brands. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto - Stable Discounts Imply Resilient 3Q Earnings

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)

Minth (425): Battery Housing as New Growth Driver

Dirt cheap valuation (-27% YTD) while numbers have improved. Produced an environmentally friendly aluminum with 85% less emissions compared to...

Henry Soediarko

Minth Group (425 HK) - In-Line 1H24 with Better Earnings Visibility Ahead

Maintain BUY. Minth’s 1H24 net profit was in line with our forecast, coupled with strong free cash flow to cut its net debt level.

CMB International

Minth Group (425 HK) - Overseas Foundation to Withstand Trade Risks

Minth Group (Minth) has been transforming from an exterior decorative parts maker to a more diversified tier1 supplier with manufacturing...

CMB International

Auto - 3Q Earnings Preview: Leading Players to Beat

We expect 3Q24 earnings of some leading Chinese automakers including BYD, Geely and Li Auto to rise substantially from 2Q24, which could beat...

CMB International

Auto - Stable Discounts Imply Resilient 3Q Earnings

We summarize the Sep 2024 price discounts at dealers for major automakers in this report. Note that such discounts for each automaker are...

CMB International

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