00425 Should I Buy

The analyst rating from Morgan Stanley for MINTH GROUP is based on several key factors: 1. Strong Year-to-Date Performance: MINTH GROUP's stock has risen by 35% year-to-date, significantly outperforming the Hang Seng Index's 4% increase, indicating strong market expectations for the company's future orders, particularly in its humanoid robot and liquid cooling businesses. 2. Global Production Advantage: The company has a competitive edge over other Chinese suppliers due to its established factories in the US, Canada, and Mexico, which enhances its global production capabilities. 3. Joint Venture Expansion: MINTH GROUP's announcement of a joint venture with LEADER HARMONIOUS in the US to expand humanoid robot module assemblies is seen as a strategic move to strengthen its position in the North American market. 4. Increased Growth Forecast: Morgan Stanley has raised its mid-term growth rate forecast for MINTH GROUP from 7% to 9%, driven by higher-than-expected revenue projections from its humanoid robots, liquid cooling, and electric vertical takeoff and landing aircraft businesses. These factors collectively support Morgan Stanley's Overweight rating and the increase in the target price from HKD 43 to HKD 50.