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BLACK SESAME(2533)
Analysis¡G
Black Sesame primarily provides intelligent automotive system-on-chip (SoC) and SoC-based autonomous driving solutions in China, as well as intelligent imaging solutions. In the first half of this year, the Group continued to deepen cooperation with leading customers such as Geely, BYD, Dongfeng, and FAW. ADAS solutions based on the A1000 series chips have achieved mass production and shipment on models including Geely Galaxy E8, Xingyao 8, the new Dongfeng e£k (Yipai) 007, Dongfeng e£k (Yipai) 008, and multiple models from other leading automakers. While delivering ongoing shipments and advancing engineering R&D for related ADAS platforms, the Group has secured new domestic and international model designations from additional customers, with the number of designated models becoming increasingly diverse. In addition to new domestic designations, it has continued to add multiple designated models from various overseas customers, with overseas designations reaching a record high in terms of both models and quantity in the first half of this year.
The Group is steadily advancing the commercialization of ADAS solutions based on the C1200 series chips. High-speed navigation assist, urban memory navigation, and memory parking functions¡Xdeveloped jointly with ecosystem partners¡Xhave completed testing and validation in multiple cities and are about to achieve mass production deployment in projects from several leading new energy vehicle customers. At the same time, in the first half of 2025, the Group launched a safe intelligent base architecture based on the C1200 series chips, which ensures functional safety for core features while providing flexible computing power expansion and modular upgrade support, fully covering intelligent needs from entry-level to flagship vehicle models. It is currently undergoing validation with OEMs.
ADAS solutions based on the A2000 series chips are currently in the development and validation phase, fully supporting all-scenario urban NOA (Navigate on Autopilot) applications and extensible to L3 and L4 scenarios. The Group¡¦s self-developed toolchain and algorithms are mature and ready, while closely collaborating with leading algorithm partners to drive development and optimization, and partnering with top Tier-1 suppliers to jointly build and validate solutions. The goal is to achieve designations and mass production agreements with leading automaker customers within this year, promoting the deployment and business expansion of high-computing-power intelligent driving chips and open and leading-edge algorithm solutions.
In the robotics sector, the Group is developing a ¡§little brain¡¨ solution based on the C1200 series chips for robot motion control functions, as well as an embodied intelligence ¡§big brain¡¨ solution based on the A2000 chips for perception and computing functions in intelligent robots. The Group has reached strategic cooperation with leading humanoid robot companies and, through investments in robotics firms, is jointly developing multi-modal perception compute modules for high-dynamic environments, driving the ecosystem and business expansion of chips and embodied intelligence solutions. In the unmanned logistics vehicle sector, the Group has partnered with ecosystem collaborators to create an L4 intelligent driving system based on its chips and proprietary laser-vision integrated sensors, enabling multi-modal end-to-end large model capabilities for low-speed L4 functions in enclosed scenarios such as ports and industrial parks. It is currently in continuous shipment.(The author does not hold the above stock.)
Strategy¡G
Buy-in Price: $21.50, Target Price: $23.20-24.00, Cut Loss Price: $20.50
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BOSIDENG(3998)
Analysis¡G
In company news, Bosideng has appointed Kim Jones, former Men's Creative Director at Louis Vuitton and Dior, as the Creative Director of its AREAL premium urban line. This move represents a key step in its premiumization strategy. In the short term, the market reacted positively to this "disruptive crossover collaboration," with the stock price surging nearly 10% in a single day following the announcement, confirming investor recognition of the brand's upgrade potential. In the medium to long term, Kim Jones's international design pedigree and resources are expected to enhance the product's fashion appeal and premium pricing power, helping Bosideng break the monopoly of international high-end brands in the down jacket market. As a global leader in the down apparel industry, Bosideng is well-positioned to maintain steady growth, leveraging its brand strength, product innovation, and optimized distribution channels. Recently, boosted by nationwide temperature drops and promotional activities during the Double Eleven and Double Twelve shopping festivals, strong seasonal sales revenue is anticipated. The company's current valuation is at a moderate level within the industry, presenting certain allocation value.
Strategy¡G
Buy-in Price: $4.75, Target Price: $5.20, Cut Loss Price: $4.52
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Minth Group (425.HK) - Battery Box Becomes the Largest Business Segment
Company ProfileMinth Group is a world-renowned supplier engaged in the design, manufacturing and sales of automotive interior and exterior trim and body structure parts. The domestic market share of its core products exceeds 30%. The company has production bases in China, the United States, Mexico, Thailand, Germany, Serbia and other countries, and its customers cover major vehicle companies in the market. Based on a variety of new materials and surface treatment technologies, in recent years the company has developed new electrified and smart product lines such as aluminum power battery boxes and smart front faces, forming a series of competitive terminal products. Investment SummaryStrong Profit Growth Maintained in H1 2025, Net Profit Up Nearly 20%
Minth Group recorded revenue of RMB12.287 billion (RMB, the same below) in H1 2025, up 10.8% yoy; net profit attributable to the parent company reached RMB1.277 billion, equivalent to an increase of 19.5% yoy. The main drivers behind the profit growth include: 1) continued ramp-up of orders for NEV components such as battery boxes, leading to higher capacity utilisation; 2) incremental earnings contribution from capacity ramp-up at overseas production bases; 3) decline in unit transportation costs and favourable exchange rates. Meanwhile, the Company continued to advance its localisation strategy and implement effective cost control measures, resulting in lower expense ratios.
By region, domestic revenue was RMB4.31 billion, down 4.9% yoy, mainly due to the decline in market share of joint venture brands in China. International business remained strong, with revenue up 21.6% yoy to RMB7.98 billion, primarily driven by rapid growth in battery box and structural component businesses in the European market, as well as stable contributions from traditional exterior parts in international markets. The proportion of international business in total revenue rose by 5.2 ppts from 59.7% at the end of 2024 to 64.9%. The localisation strategy in North America, Europe and other regions has effectively reduced tariffs and geopolitical risks, while enhancing competitiveness in local markets. Battery Box Becomes the Largest Business Segment
In H1, the Company's revenue from plastic parts, metal and trims, battery boxes, and aluminium parts reached RMB2.87/2.66/3.58/2.47 billion respectively, up 0.9%/4.7%/49.8%/4.1% yoy. Their respective shares of total revenue changed by -2.3/-1.3/+7.6/-1.3 ppts yoy, to 23.3%/21.6%/29.2%/20.1%.
During the review period, the Company achieved breakthroughs in its battery box and body chassis structure businesses, with a more balanced customer mix: it broke into the structural component business for Toyota Europe, and secured chassis structure orders from multiple Chinese clients such as Great Wall and Geely; entered the battery box business of Chery for the first time and secured repeat orders from BYD; made its first breakthrough in battery box structural parts for General Motors; and continued to expand its battery box business with Stellantis and Volkswagen. In the area of smart interior and exterior parts, the Company achieved breakthroughs in bumper assembly business with Ford North America and Renault, while continuing to secure orders from clients such as Toyota, Hyundai-Kia, Changan, and General Motors. Profitability Continued to Improve SteadilyDuring the period, gross margin was approximately 28.3%, down 0.2 ppts yoy, mainly due to the rising contribution from the battery box business. The gross margins of the four major business segments were 26.1%, 28.1%, 23.0%, 32.6%, representing yoy changes of +2.0, +1.6, +2.4, -2.4 ppts, respectively. Among them, the battery box segment achieved a gross margin of 23%, moving closer to the 25% target. During the period, selling, administration and R&D expense ratios declined by 0.6, 0.1, and 0.5 ppts yoy respectively, lifting net profit margin by 0.8 ppts to 10.4%, indicating an improvement in the Company's profitability.
Operating cash flow rose by RMB 510 million yoy to RMB2.24 billion in H1 2025, reflecting sound cash flow conditions, which provide a solid basis for dividend payments and share buybacks. Capital expenditure stood at RMB902 million, down 17.5% yoy, as the Company has passed its peak investment phase and will focus on equipment upgrades and flexible transformation going forward. In H2, as several new overseas production lines continue to ramp up, overall gross margin is expected to see a slight improvement mom. New Businesses and Emerging Segments Gearing UpThe Company is actively exploring new business segments and has made forward-looking deployments in areas such as eVTOL (electric vertical take-off and landing aircraft), wireless charging for electric vehicles, and bionic robots---including core components such as electronic skin, smart masks, integrated joints, bodies, and rotors. During the period, the Company partnered with leading enterprises including EHang and Zhiyuan Robotics. Some products have completed small-batch sample deliveries to multiple customers, and some have already secured mass production orders, with revenue contribution expected to begin in 2026/2027. With the rapid development of robotaxis and autonomous driving, the wireless charging industry is projected to experience explosive growth in 2026. At the same time, leveraging its battery box technology, the Company is also focusing on the development and implementation of AI liquid-cooling system-related products, aiming to capture opportunities in the rapidly growing artificial intelligence market. ValuationThe company maintains stable overall operations, with continuous improvement in profitability, demonstrating strong risk resilience and growth adaptability. Meanwhile, the cultivation of new business areas and the expansion of new ventures are expected to foster a second growth curve, driving the company's sustainable development in the medium to long term.
We slightly revised the expected EPS for 2025/2026/2027 to 2.35/2.77/3.25 (from 2.43/2.89/3.30) yuan for the under expected GM.
We believe that it is reasonable to give the Company a valuation of 12.7/10.6/9.0 x P/E and 1.5/1.4/1.2x P/B for 2025/2026/2027, equivalent to target price of HK$ 32.6 and Accumulate rating. P/E Band
Source: Wind, Phillip Securities Hong Kong Research Financials
(Closing price as at 17 October 2025) Click here to download PDF version...
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