SEHK:425

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

425

-1.9%

HK Auto Components

-3.9%

HK Market


1 Year Return

16.0%

425

14.0%

HK Auto Components

-1.5%

HK Market

Return vs Industry: 425 matched the Hong Kong Auto Components industry which returned 16.9% over the past year.

Return vs Market: 425 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

425IndustryMarket
7 Day-0.7%-1.9%-3.9%
30 Day22.1%0.9%-7.1%
90 Day28.7%22.3%-0.7%
1 Year19.7%16.0%17.7%14.0%2.4%-1.5%
3 Year-20.4%-27.0%-18.5%-25.2%-7.2%-17.2%
5 Year146.1%115.6%45.8%29.0%20.1%-0.1%

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?

25.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 425 (HK$29.8) is trading above our estimate of fair value (HK$24.17)

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 (25.9x) compared to the HK Auto Components industry average (13.4x).

PE vs Market: 425 is poor value based on its PE Ratio (25.9x) compared to the Hong Kong market (11.1x).


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 (2.2x) 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 25 analysts?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 425's forecast earnings growth (25% per year) is above the savings rate (1.6%).

Earnings vs Market: 425's earnings (25% per year) are forecast to grow faster than the Hong Kong market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 425's revenue (15% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 425's revenue (15% 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 (12.2%).


Next Steps

Past Performance

How has Minth Group performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 425 has high quality earnings.

Growing Profit Margin: 425's current net profit margins (9.8%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: 425's earnings have grown by 2.3% 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 (-25.7%) over the past year, making it difficult to compare to the Auto Components industry average (-17.7%).


Return on Equity

High ROE: 425's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Minth Group's financial position?


Financial Position Analysis

Short Term Liabilities: 425's short term assets (CN¥12.8B) exceed its short term liabilities (CN¥8.8B).

Long Term Liabilities: 425's short term assets (CN¥12.8B) exceed its long term liabilities (CN¥1.2B).


Debt to Equity History and Analysis

Debt Level: 425's debt to equity ratio (42.8%) is considered high.

Reducing Debt: 425's debt to equity ratio has increased from 33.3% to 42.8% over the past 5 years.

Debt Coverage: 425's debt is well covered by operating cash flow (38.6%).

Interest Coverage: 425 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 425's dividend (2.18%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 425's dividend (2.18%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.92%).


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 reasonable payout ratio (57.8%), 425's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 425's dividends in 3 years are forecast to be well covered by earnings (40.1% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Bin Bo Chen (56 yo)

1.08yrs

Tenure

Mr. Bin Bo Chen serves as Chief Executive Officer of Minth Group Limited since August 21, 2019 and serves as its Executive Director since May 28, 2020. Mr. Chen joined Minth Group Limited in November 2018 ...


Leadership Team

NamePositionTenureCompensationOwnership
Chien Ya Chin
Executive Director4.33yrsCN¥1.70mno data
Bau Hong
Special Assistant to Chairmanno datano datano data
Ching Lien Wei
Executive Chairperson0.33yrno datano data
Bin Bo Chen
CEO & Executive Director1.08yrsno datano data
Yuxia Zhang
Chief Financial Officerno datano datano data
Yan Chun Liu
Chief Operating Officer2yrsno datano data
Lei Li Yi
Head of Investor Relations Department & Company Secretaryno datano datano data
Ching Li Wong
Managing Director of Minth Europeno datano datano data

1.1yrs

Average Tenure

55yo

Average Age

Experienced Management: 425's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chien Ya Chin
Executive Director4.33yrsCN¥1.70mno data
Ching Lien Wei
Executive Chairperson0.33yrno datano data
Bin Bo Chen
CEO & Executive Director1.08yrsno datano data
Ching Wang
Independent Non-Executive Director14.92yrsCN¥431.00kno data
Zheng Yu
Independent Non-Executive Director12.67yrsCN¥462.00k0.088%
CN¥ 30.1m
Tak Lung Wu
Independent Non-Executive Director0.33yrno datano data

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 425's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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: 1992
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$34.382b
  • Shares outstanding: 1.15b
  • Website: https://www.minthgroup.com

Number of Employees


Location

  • Minth Group Limited
  • No. 8 Dagang No. 6 Road
  • Ningbo Eco & Tech Dev Zn
  • 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 moulds of passenger cars in the People’s Republic of China, the United St ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 19:34
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.