Guotai Junan raised Minshi Group's earnings forecast for this year and next two years to 2.196 yuan and 2.63 yuan respectively.
The Zhitong Finance App learned that Guotai Junan released a research report saying that maintaining Minshi Group's (00425) “buy” rating, the target price was lowered from HK$29 to HK$22, which is equivalent to 9 times the predicted price-earnings ratio for this year.
The bank said it will raise Minshi Group's earnings forecast for this year and next two years by 0.302 yuan and 0.361 yuan to 2.196 yuan and 2.63 yuan respectively, and add the 2026 earnings forecast to 3.211 yuan to reflect the rapid growth in passenger car sales in mainland China, the synergy effect brought about by overseas market expansion, and the narrowing of gross margin.
Furthermore, Guotai Junan anticipates that the company's battery case business (BHB) sales will continue to grow rapidly, and its share will increase significantly. As the penetration rate of new energy vehicles in the mainland continues to increase, demand for this type of product will continue to grow, and it is estimated that related revenue will grow at a compound annual rate of 27.7% over the next three years.