Bank of America Securities raised Minshi Group (00425)'s revenue forecast for this year and next two years by 1% and 2%.
The Zhitong Finance App learned that Bank of America Securities released a research report saying that maintaining the Minshi Group (00425) “buy” rating is based on valuation attraction and steady growth expectations for this year, but it does not expect the company to pay dividends over the next 12 months, due to the need for cash reserves to cope with future expansion. The company's profit forecast for this year and next two was raised by 4% each, and the target price was raised from HK$18 to HK$18.6.
The bank said it raised the company's revenue forecast by 1% and 2% for this year and next, based on increased confidence in the company's battery pack project. At the same time, the company's gross margin forecast for this year and next two years was raised, based on a recovery in the gross margin of plastic parts and aluminum strips. At the analysts' meeting, management reiterated their confidence to achieve 20% annual sales growth this year and the medium to long term. It also indicated that it is considering cash dividends as debt financing costs drop and stock market financing difficulties decrease. The company also revealed new products to drive growth, including battery box structural components and wireless charging technology.