敏实集团(00425) 　　Minth’s subsidiary Minan Automotive expected to obtain NEVproduction permit. The latter already possessed some core NEVtechnologies, and production expected to start in 2018E 　　Tapping into growth from NEVs. Minth to benefit from industryupgrades trend (lightweight vehicles, smart auto cameras andNEVs) 　　Market overly negative on impacts from potential trade war.Maintain BUY with TP of HK$33.0 　　Granted NEV permit. NEV business taking shape 　　According to media report, NDRC has approved the electric passengervehicles manufacturing project by Minan Automotive, and the latter wasexpected to obtain a production permit for NEVs. Its core NEVtechnologies include: (1) electric engines: JV with US Clean Wave (Minth:51%) this year; (2) electric control: Minan possessing production andR&D capacity; (3) batteries: expected to be from outsourcing based onvarious functionalities of different models; and (4) lightweight vehicles:Minan acquired aluminum body technology and vehicle intellectualproperty rights from Italy's Grecav in Jan 2011. 　　NEV development generates synergies with existingbusiness 　　Minth's traditional business is on decorative and body structure parts. Itsexisting and new businesses could also create synergies as: (1) itstraditional business supply low-cost/high-quality/stable auto parts forelectric vehicles; (2) its lightweight technology improves electric vehicles?competitiveness; (3) self-produced camera module is the technologicalfoundation for smart and intelligent NEVs; and (4) Minan replicatesparent's stringent production management model with good cost control. 　　Strong growth to continue in 2017-18E and 11x P/E onlyaround historical average 　　Stock price has been depressed on potential trade war concerns, butMinth?s US plant capacity expansion should be able to meet higherdomestic demand, and thus the above mentioned risk could be mitigated.The counter is a key lightweight and smart vehicles play in the HKmarket. Our TP of HK$33.0 implies 15x FY17 P/E. Its 2015-18E profitCAGR is 25%, above 2011-15 of 12%. We believe the stock deserves apremium vs historical average (11x) given high growth in 2017-18E.