Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Kelusa Asia Focus Funds

Equity Bottom-Up

I'm forking a piece by insight provider <a href="https://www.smartkarma.com/profiles/196" target="_blank" data-smartkarma-citation="accounts:196">Jonathan Tanne</a> on <a href="https://www.smartkarma.com/entities/9232" target="_blank" data-smartkarma-citation="entities:9232:1">Minth Group Ltd</a> . The insight, <a href="https://www.smartkarma.com/insights/a-quality-high-roe-business-going-global" target="_blank" data-smartkarma-citation="insights:4341">A Quality High ROE Business Going Global</a>  is pretty detailed and sets the long-term backdrop on which Minth is a good investment. Also, for the uninitiated, it describes Minth's business model reasonably well. I will spend time looking at Minth's H1 2016 numbers in more detail and will try to provide a forecast as to what H1 2016 will look like. I feel this number will hold the key to further upgrades in the stock. I'm looking at adjusted profit numbers increasing close to around 40-45% YoY led by 3 factors : 1.  20% Revenue growth in H1 2016. 2. G.P Margin expansion to 34%. ( Management guidance is between 33-35%) 3. SG&amp;A as % of sales decline to 14.3% ( company is achieving scale in its new factories ) I'm going to try and lay an educated foundation ( along with management guidance ) on which these premises are based.

I'm forking a piece by insight provider Jonathan Tanne on Minth Group Ltd . The insight, A Quality High ROE Business Going Global  is pretty detailed and sets the long-term backdrop on which Minth is a good investment. Also, for the uninitiated, it describes Minth's business model reasonably well. I will spend time looking at Minth's H1 2016 numbers in more detail and will try to provide a forecast as to what H1 2016 will look like. I feel this number will hold the key to further upgrades in the stock. I'm looking at adjusted profit numbers increasing close to around 40-45% YoY led by 3 factors : 1.  20% Revenue growth in H1 2016. 2. G.P Margin expansion to 34%. ( Management guidance is between 33-35%) 3. SG&amp;A as % of sales decline to 14.3% ( company is achieving scale in its new factories ) I'm going to try and lay an educated foundation ( along with management guidance ) on which these premises are based. 

Portfolio Manager, Tangible Asset Management

Jonathan Tanne CFA CA

Portfolio Manager

Tangible Asset Management

How many public Chinese/HK listed companies do you know that have successfully gone global and grown into a global supplier without diluting bottom line earnings and margins ?  NOT MANY! But here's one...Minth is a large (&gt;US$3bn market cap) principally China-based auto component company, focussing on trims, decorative parts, and body structural parts, made of plastics, steel and also recently aluminium. Whilst these are largely just simple low value commodity products, over the years Minth has built a reputation for quality and reliability that is unmatched in China, and that has given it a real competitive edge which is very hard to replicate, as its business is based on multi-year relationships with the OEMs that take a long time to establish.

How many public Chinese/HK listed companies do you know that have successfully gone global and grown into a global supplier without diluting bottom line earnings and margins ?  NOT MANY! But here's one...Minth is a large (&gt;US$3bn market cap) principally China-based auto component company, focussing on trims, decorative parts, and body structural parts, made of plastics, steel and also recently aluminium. Whilst these are largely just simple low value commodity products, over the years Minth has built a reputation for quality and reliability that is unmatched in China, and that has given it a real competitive edge which is very hard to replicate, as its business is based on multi-year relationships with the OEMs that take a long time to establish. 

China

Minth Group Ltd. manufactures exterior automobile body parts.  The Company produces structural body parts, decorative parts, and trim.  Minth supplies multinational automobile manufacturers operating in China.

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Minth Group Ltd (425 HK)

Minth H1 2016 Looking Set to Beat

I'm forking a piece by insight provider Jonathan Tanne on Minth Group Ltd . The insight, A Quality High ROE Business Going Global is pretty...

Sameer Taneja

A Quality High ROE Business Going Global

How many public Chinese/HK listed companies do you know that have successfully gone global and grown into a global supplier without diluting bottom...

Jonathan Tanne CFA CA

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