SEHK:425

Stock Analysis Report

Executive Summary

Minth Group Limited, an investment holding company, designs, develops, manufactures, processes, and sells automobile body parts and molds of passenger cars in the People’s Republic of China, the United States, Japan, Thailand, Germany, Mexico, and internationally.

Rewards

Earnings are forecast to grow 15.93% per year

Pays a high and reliable dividend of 2.52%

Risk Analysis

No risks detected for 425 from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Minth Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 425 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

425

1.8%

HK Auto Components

0.6%

HK Market


1 Year Return

-15.0%

425

-23.2%

HK Auto Components

-4.5%

HK Market

Return vs Industry: 425 exceeded the Hong Kong Auto Components industry which returned -22.9% over the past year.

Return vs Market: 425 underperformed the Hong Kong Market which returned -3.8% over the past year.


Shareholder returns

425IndustryMarket
7 Day0.4%1.8%0.6%
30 Day-8.6%-4.4%-5.2%
90 Day-11.7%-9.0%2.3%
1 Year-12.3%-15.0%-20.5%-23.2%-1.0%-4.5%
3 Year6.4%-1.4%-17.6%-23.7%14.4%2.9%
5 Year78.2%56.8%33.0%17.9%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Minth Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Minth Group undervalued compared to its fair value and its price relative to the market?

16.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 425 (HK$24.9) is trading above our estimate of fair value (HK$16.72)

Significantly Below Fair Value: 425 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 425 is poor value based on its PE Ratio (16.4x) compared to the Auto Components industry average (10.3x).

PE vs Market: 425 is poor value based on its PE Ratio (16.4x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 425 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 425 is overvalued based on its PB Ratio (1.9x) compared to the HK Auto Components industry average (1x).


Next Steps

Future Growth

How is Minth Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 425's forecast earnings growth (15.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 425's earnings (15.9% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: 425's earnings are forecast to grow, but not significantly.

Revenue vs Market: 425's revenue (12.6% per year) is forecast to grow faster than the Hong Kong market (10.5% per year).

High Growth Revenue: 425's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 425's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has Minth Group performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 425 has high quality earnings.

Growing Profit Margin: 425's current net profit margins (12.4%) are lower than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: 425's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: 425's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 425 had negative earnings growth (-19.9%) over the past year, making it difficult to compare to the Auto Components industry average (-0.7%).


Return on Equity

High ROE: 425's Return on Equity (11.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Minth Group's financial position?


Financial Position Analysis

Short Term Liabilities: 425's short term assets (CN¥10.5B) exceed its short term liabilities (CN¥7.0B).

Long Term Liabilities: 425's short term assets (CN¥10.5B) exceed its long term liabilities (CN¥201.3M).


Debt to Equity History and Analysis

Debt Level: 425's debt to equity ratio (27.7%) is considered satisfactory.

Reducing Debt: 425's debt to equity ratio has reduced from 35.5% to 27.7% over the past 5 years.

Debt Coverage: 425's debt is well covered by operating cash flow (57.5%).

Interest Coverage: 425's interest payments on its debt are well covered by EBIT (68.4x coverage).


Balance Sheet

Inventory Level: 425 has a high level of physical assets or inventory.

Debt Coverage by Assets: 425's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Minth Group's current dividend yield, its reliability and sustainability?

2.52%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%2.3%markettop25%6.4%industryaverage4.0%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: 425's dividend (2.52%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 425's dividend (2.52%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: 425's dividends per share have been stable in the past 10 years.

Growing Dividend: 425's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.4%), 425's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 425's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Bin Bo Chen (55yo)

0.5yrs

Tenure

Mr. Bin Bo Chen serves as Chief Executive Officer of Minth Group Limited since August 21, 2019. Mr. Chen joined Minth Group Limited in November 2018 as a special assistant to the Chairman. Mr. Chen had bee ...


Leadership Team

NamePositionTenureCompensationOwnership
Chiung Huang
Chairperson & Chief Human Resources Officer0.3yrsCN¥5.10mno data
Chien Chin
Executive Director3.8yrsCN¥1.17mno data
Bau Hong
Special Assistant to Chairman0yrsno datano data
Bin Bo Chen
Chief Executive Officer0.5yrsno datano data
Hsiang Sung
Chief Financial Officer2.8yrsno datano data
Yan Liu
Chief Operating Officer1.4yrsno datano data
Lei Yi
Head of Investor Relations Department & Company Secretary0yrsno data0.0096% CN¥2.8m

2.1yrs

Average Tenure

47yo

Average Age

Experienced Management: 425's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chiung Huang
Chairperson & Chief Human Resources Officer0.3yrsCN¥5.10mno data
Chien Chin
Executive Director3.8yrsCN¥1.17mno data
Fong Wu
Independent Non-Executive Director11.1yrsCN¥473.00kno data
Ching Wang
Independent Non-Executive Director14.3yrsCN¥473.00kno data
Zheng Yu
Independent Non-Executive Director12.1yrsCN¥502.00k0.088% CN¥25.4m

11.1yrs

Average Tenure

51yo

Average Age

Experienced Board: 425's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Minth Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Minth Group Limited
  • Ticker: 425
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$28.932b
  • Shares outstanding: 1.15b
  • Website: https://www.minthgroup.com

Number of Employees


Location

  • Minth Group Limited
  • No. 8 Dagang No. 6 Road
  • Ningbo Economic and Technological Development Zone
  • Ningbo
  • Zhejiang Province
  • 315800
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
425SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2005
MNTH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2005
M3IDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2005
425SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2005
425SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2005

Biography

Minth Group Limited, an investment holding company, designs, develops, manufactures, processes, and sells automobile body parts and molds of passenger cars in the People’s Republic of China, the United States, Japan, Thailand, Germany, Mexico, and internationally. The company also manufactures, develops, and sells batteries and motor systems for electric vehicles, as well as optical parts, metal molds, automation machines, software, and production lines; manufactures buses, modified cars, and electric vehicles; develops and manages real estate properties; and offers bookkeeping services. In addition, it engages in import and export trading, logistics, and technology import activities. Minth Group Limited was incorporated in 2005 and is headquartered in Ningbo, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:48
End of Day Share Price2020/02/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.