Citigroup expects Minshi Group (00425) to benefit from strong growth in China's passenger car exports.
The Zhitong Finance App learned that Citi released a research report saying that Minshi Group (00425)'s revenue this year and next two years is expected to increase 18% and 14% year over year, respectively, to 24.2 billion yuan and 27.6 billion yuan. Based on good operating expenses control, the bank raised Min Shiming's two-year net profit forecast by 3% to 5% to 2.25 billion and 2.78 billion yuan, and the target price was reduced from HK$27 to HK$22. Sensitive management said that if interest rates fall back to a low level, the company may resume dividends next year. The bank expected the company to benefit from strong growth in China's passenger car exports and renewed the stock's “buy” rating.