NEXTEER (01316) saw its shares rise more than 3% during the trading session. At the time of writing, the stock was up 2.31%, trading at HK$7.10, with a turnover of HK$30.8255 million.
BOC International released a research report forecasting that, supported by strengthening demand in North American and European markets, favorable exchange rate factors, and stable contributions from the Chinese market, NEXTEER's operational performance in the second half of last year is expected to be robust. Revenue is projected to increase by 7% year-on-year to US$2.3 billion, reaching a new semi-annual record, while net profit is anticipated to exceed US$70 million, continuing the profit recovery trend observed since 2024.
The report suggests that the optimization and restructuring of NEXTEER's North American facilities have already yielded initial results. The new national standard for automotive steering systems, set to take effect this July, which eliminates the mandatory mechanical linkage requirement, is expected to remove a key regulatory barrier. This development is anticipated to accelerate the adoption of steer-by-wire technology and drive revenue growth for NEXTEER's steer-by-wire business. Consequently, BOC International has raised its net profit forecasts for NEXTEER for 2025 and 2026 by 7% to 10%, to US$137 million and US$160 million respectively, upgraded its rating to "Buy," and increased the target price to HK$9.
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