[ET Net News Agency, 26 August 2019] HSBC Global Research cut its target price for
Minth Group (00425) to HK$29 from HK$29.3 due to lower earnings and operating cash flow
estimates. The research house maintained its "buy" rating.
HSBC said Minth's 1H results saw some positives despite industry headwinds. Free cash
flow turned positive as a result of an increase in operating cash flow and lower capex.
Minth cut its capex by 33% in 1H by limiting resources to new products and new projects.
Going forward, Minth will move some US exports to Thailand and US local plants to
further mitigate the negative impact. HSBC incorporated the 1H results and cut its
adjusted earnings estimates by 9%, 9% and 8% for 2019, 2020 and 2021 as it expects
continuing pressure in the China auto market. (KL)