When Your Car Needs to Go on Diet - Call Minth

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. 

Minth Group Ltd

A Quality High ROE Business Going Global