DBS expects Minshi Group (00425) to increase revenue by 20% in the 2024 fiscal year.
The Zhitong Finance App learned that DBS released a research report stating that it maintained Minshi Group's (00425) “buy” rating, lowered its earnings forecast for FY2025 by 2% due to a slowdown in global automotive industry growth, while reducing the target price from HK$20.3 to HK$18.
According to the report, the active expansion of the electric vehicle parts and systems business will help the number of new orders in the 2024 fiscal year. It is expected that the new order level will be on par with the 16.2 billion yuan in the previous fiscal year. The customer penetration rate and overseas business will also help drive profit prospects in the 2024 fiscal year.
The bank proposed that the main beneficiaries of the market will continue to expand, so it is anticipated that revenue will increase by 20% in fiscal year 2024, and the increase in production of new products can drive profits, especially its battery case business. The new products can reflect higher profits. With a higher contribution from the battery case business, the bank expects the Group's gross margin to reach around 28% in the 2024 and 2025 fiscal years.