Trim Target Price To HK$20.00 On Slower Industry Growth Despite Strong Orders
Minth’s revenue will be driven by the ramp-up of EV-related new projects and the expansion of its customer base to include more Chinese carmakers. However, the slowdown in global EV sales and intensifying price competition will drag earnings growth. All in all, we keep our 2023 EPS estimate at Rmb1.69 and trim 2024-25 EPS estimates by 8%/11% to Rmb1.87/Rmb2.16 respectively. Maintain BUY. Cut target price from HK$33.00 to HK$20.00.
