UOB Kay Hian Maintains Positive Outlook on Markets in the Medium Term; BABA, GANFENGLITHIUM, and MINTH GROUP Added to Buy Recommendations; MEITUAN Added to Sell Recommendations
Market Performance: The Chinese stock market saw a rebound in January, with the HSI/ MSCI China Index increasing by 6.9% and 5% MoM, despite a significant sell-off by the 'National Team' amounting to US$68 billion.
Top Performers: WUXI BIO and PLOVER BAY TECH were highlighted as top performers with returns of 17.7% and 16.6%, respectively, while several stocks, including Alibaba and Ganfeng Lithium, were added to the Buy list.
Volatility Outlook: UOB Kay Hian anticipates continued market volatility in February due to recent corrections in gold and silver prices, but maintains a positive medium-term outlook supported by macro policies.
Stock Recommendations: The broker updated its recommendations, adding stocks like Alibaba and Ganfeng Lithium to the Buy list, while placing Meituan on the Sell list, and noted the need to cut losses on several other stocks.
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UOB Kay Hian Maintains Positive Outlook on Markets in the Medium Term; BABA, GANFENGLITHIUM, and MINTH GROUP Added to Buy Recommendations; MEITUAN Added to Sell Recommendations
Market Performance: The Chinese stock market saw a rebound in January, with the HSI/ MSCI China Index increasing by 6.9% and 5% MoM, despite a significant sell-off by the 'National Team' amounting to US$68 billion.
Top Performers: WUXI BIO and PLOVER BAY TECH were highlighted as top performers with returns of 17.7% and 16.6%, respectively, while several stocks, including Alibaba and Ganfeng Lithium, were added to the Buy list.
Volatility Outlook: UOB Kay Hian anticipates continued market volatility in February due to recent corrections in gold and silver prices, but maintains a positive medium-term outlook supported by macro policies.
Stock Recommendations: The broker updated its recommendations, adding stocks like Alibaba and Ganfeng Lithium to the Buy list, while placing Meituan on the Sell list, and noted the need to cut losses on several other stocks.
CMBI: MINTH GROUP (00425.HK) Sees Strong Growth Prospects from Battery Compartment, Robotics, and Liquid Cooling Business; Price Target Raised to $42
Revenue Growth Forecast: MINTH GROUP is expected to achieve higher revenue from its aluminum parts and battery compartment businesses, with a 1% increase in the 2H25 revenue forecast to RMB13.7 billion, reflecting a 13% year-over-year growth.
Gross Margin Stability: CMBI maintains its 2H25 gross margin forecast at 29.1%, attributing this stability to MINTH GROUP's ability to pass on raw material price increases to customers.
Increased R&D Investment: The broker predicts a 0.4 percentage point increase in the R&D expense ratio in 2H25 to support the development of new businesses like robotics and liquid cooling.
Positive Market Outlook: CMBI projects a 16% year-over-year growth in MINTH GROUP's NEV sales in Europe, leading to an upgrade in the stock's target price from $38 to $42, while maintaining a Buy rating.
Citi Supports BYD COMPANY/ PONY-W, Outlines 5 Advantages and Obstacles for China's Automotive Sector
Citi's Outlook on Chinese Carmakers: Citi has a neutral outlook for Chinese carmakers in 1Q26, predicting that BYD, Geely, and Leapmotor may outperform the market due to model updates and strong export growth, while others like Seres and Li Auto may struggle with profit margins and weak sales.
Industry Challenges and Tailwinds: The Chinese auto industry is expected to face five major tailwinds, including increased EV market share and export growth, but also five challenges such as rising costs and cautious retail growth for EVs, leading to a potential decline in wholesale and retail forecasts for FY26.
Stock Recommendations: Citi has recommended several stocks, including BYD, Pony, WeRide, Hesai, Minth Group, and Weichai Power, amidst a backdrop of short selling activity and varying market performance.
Market Conditions: The report highlights a potential end to the price war in passenger vehicles and a favorable phase for commercial vehicle demand, while also noting high inventory levels of fuel vehicles as a concern for the market.
CLSA: MINTH GROUP Expected to Gain from German EV Subsidies; Target Price Increased to HKD43
EV Subsidies Impact: The introduction of electric vehicle subsidies in Germany is expected to positively influence MINTH GROUP, a prominent European battery housing supplier, according to CLSA's report.
Aluminum Prices Outlook: CLSA expresses limited concern over rising aluminum prices, anticipating that the gross profit margin (GPM) for aluminum will remain stable due to increased orders and processing leverage.
Target Price Adjustment: MINTH GROUP's target price has been raised from HKD36 to HKD43, while maintaining an Outperform rating.
Short Selling Data: As of January 29, 2026, MINTH GROUP has reported short selling of $11.81 million, with a short selling ratio of 13.671%.
Daiwa Increases MINTH GROUP (00425.HK) Price Target to HKD52, Maintains Buy Rating
Earnings Forecast Review: Daiwa has reviewed the earnings forecast for MINTH GROUP, incorporating positive updates, including a 30% year-on-year increase in NEV sales in Europe last year, totaling 3 million units.
Government Subsidies Impact: Germany's resumption of national subsidies for NEV purchases is expected to drive mid-teen growth in NEV sales by 2026, with 70% of the group's battery casing orders coming from European customers.
Rating and Target Price Adjustment: Daiwa reiterated a Buy rating for MINTH GROUP and raised the target price from HKD40 to HKD52, reflecting an increase in net profit forecasts for 2026 and 2027 by 4-5%.
Market Data: As of January 29, 2026, short selling data indicates $11.81 million in short sales with a ratio of 13.671%, and HK stock quotes are delayed by at least 15 minutes.
HSI Ends at 26,629, Gaining 44 Points; HSTI Finishes at 5,762, Up 16 Points; POP MART Surges Over 5%; WHARF REIC, BIDU-SW, SHK PPT, SINOPEC CORP, CK ASSET Reach New Peaks; Market Turnover Increases
Market Performance: The HSI rose by 44 points (0.2%) to 26,629, while the HSTI increased by 16 points (0.3%) to 5,762, and the HSCEI fell by 8 points (0.1%) to 9,114, with a market turnover of $234.86 billion.
Active Heavyweights: Notable movements included PING AN down 2.3%, BABA up 1%, TENCENT down 0.8%, and XIAOMI down 0.5%, with significant short selling activity across these stocks.
Top Gainers: POP MART surged by 5.97%, WHARF REIC increased by 4.8%, LI AUTO rose by 4.1%, and BIDU-SW also gained 4.1%, all hitting new highs.
Notable Declines: CHINA LIFE fell by 3.82%, while CHINAHONGQIAO decreased by 3%, amidst varying short selling ratios for these stocks.
UOB Kay Hian Maintains Positive Outlook on Markets in the Medium Term; BABA, GANFENGLITHIUM, and MINTH GROUP Added to Buy Recommendations; MEITUAN Added to Sell Recommendations
Market Performance: The Chinese stock market saw a rebound in January, with the HSI/ MSCI China Index increasing by 6.9% and 5% MoM, despite a significant sell-off by the 'National Team' amounting to US$68 billion.
Top Performers: WUXI BIO and PLOVER BAY TECH were highlighted as top performers with returns of 17.7% and 16.6%, respectively, while several stocks, including Alibaba and Ganfeng Lithium, were added to the Buy list.
Volatility Outlook: UOB Kay Hian anticipates continued market volatility in February due to recent corrections in gold and silver prices, but maintains a positive medium-term outlook supported by macro policies.
Stock Recommendations: The broker updated its recommendations, adding stocks like Alibaba and Ganfeng Lithium to the Buy list, while placing Meituan on the Sell list, and noted the need to cut losses on several other stocks.
CMBI: MINTH GROUP (00425.HK) Sees Strong Growth Prospects from Battery Compartment, Robotics, and Liquid Cooling Business; Price Target Raised to $42
Revenue Growth Forecast: MINTH GROUP is expected to achieve higher revenue from its aluminum parts and battery compartment businesses, with a 1% increase in the 2H25 revenue forecast to RMB13.7 billion, reflecting a 13% year-over-year growth.
Gross Margin Stability: CMBI maintains its 2H25 gross margin forecast at 29.1%, attributing this stability to MINTH GROUP's ability to pass on raw material price increases to customers.
Increased R&D Investment: The broker predicts a 0.4 percentage point increase in the R&D expense ratio in 2H25 to support the development of new businesses like robotics and liquid cooling.
Positive Market Outlook: CMBI projects a 16% year-over-year growth in MINTH GROUP's NEV sales in Europe, leading to an upgrade in the stock's target price from $38 to $42, while maintaining a Buy rating.
Citi Supports BYD COMPANY/ PONY-W, Outlines 5 Advantages and Obstacles for China's Automotive Sector
Citi's Outlook on Chinese Carmakers: Citi has a neutral outlook for Chinese carmakers in 1Q26, predicting that BYD, Geely, and Leapmotor may outperform the market due to model updates and strong export growth, while others like Seres and Li Auto may struggle with profit margins and weak sales.
Industry Challenges and Tailwinds: The Chinese auto industry is expected to face five major tailwinds, including increased EV market share and export growth, but also five challenges such as rising costs and cautious retail growth for EVs, leading to a potential decline in wholesale and retail forecasts for FY26.
Stock Recommendations: Citi has recommended several stocks, including BYD, Pony, WeRide, Hesai, Minth Group, and Weichai Power, amidst a backdrop of short selling activity and varying market performance.
Market Conditions: The report highlights a potential end to the price war in passenger vehicles and a favorable phase for commercial vehicle demand, while also noting high inventory levels of fuel vehicles as a concern for the market.
CLSA: MINTH GROUP Expected to Gain from German EV Subsidies; Target Price Increased to HKD43
EV Subsidies Impact: The introduction of electric vehicle subsidies in Germany is expected to positively influence MINTH GROUP, a prominent European battery housing supplier, according to CLSA's report.
Aluminum Prices Outlook: CLSA expresses limited concern over rising aluminum prices, anticipating that the gross profit margin (GPM) for aluminum will remain stable due to increased orders and processing leverage.
Target Price Adjustment: MINTH GROUP's target price has been raised from HKD36 to HKD43, while maintaining an Outperform rating.
Short Selling Data: As of January 29, 2026, MINTH GROUP has reported short selling of $11.81 million, with a short selling ratio of 13.671%.
Daiwa Increases MINTH GROUP (00425.HK) Price Target to HKD52, Maintains Buy Rating
Earnings Forecast Review: Daiwa has reviewed the earnings forecast for MINTH GROUP, incorporating positive updates, including a 30% year-on-year increase in NEV sales in Europe last year, totaling 3 million units.
Government Subsidies Impact: Germany's resumption of national subsidies for NEV purchases is expected to drive mid-teen growth in NEV sales by 2026, with 70% of the group's battery casing orders coming from European customers.
Rating and Target Price Adjustment: Daiwa reiterated a Buy rating for MINTH GROUP and raised the target price from HKD40 to HKD52, reflecting an increase in net profit forecasts for 2026 and 2027 by 4-5%.
Market Data: As of January 29, 2026, short selling data indicates $11.81 million in short sales with a ratio of 13.671%, and HK stock quotes are delayed by at least 15 minutes.
HSI Ends at 26,629, Gaining 44 Points; HSTI Finishes at 5,762, Up 16 Points; POP MART Surges Over 5%; WHARF REIC, BIDU-SW, SHK PPT, SINOPEC CORP, CK ASSET Reach New Peaks; Market Turnover Increases
Market Performance: The HSI rose by 44 points (0.2%) to 26,629, while the HSTI increased by 16 points (0.3%) to 5,762, and the HSCEI fell by 8 points (0.1%) to 9,114, with a market turnover of $234.86 billion.
Active Heavyweights: Notable movements included PING AN down 2.3%, BABA up 1%, TENCENT down 0.8%, and XIAOMI down 0.5%, with significant short selling activity across these stocks.
Top Gainers: POP MART surged by 5.97%, WHARF REIC increased by 4.8%, LI AUTO rose by 4.1%, and BIDU-SW also gained 4.1%, all hitting new highs.
Notable Declines: CHINA LIFE fell by 3.82%, while CHINAHONGQIAO decreased by 3%, amidst varying short selling ratios for these stocks.
