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Nexteer Automotive Group
(1316)
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Rating:72Outperform
Price Target:
HK$6.00
▲(16.73% Upside)
Action:Upgraded
Date:08/19/26
The score is driven primarily by solid financial stability (especially a very low-debt balance sheet) and steady revenue growth, complemented by a positive earnings update pointing to record revenue, margin expansion, and improved free cash flow. The main offsets are thin underlying margins, uneven cash-flow conversion, and technical overextension (RSI ~79) alongside macro/pricing and cost headwinds noted on the call.
Positive Factors
Strong bookings and technology pipeline
A substantial bookings pipeline supports future program revenue, while Steer-by-Wire awards deepen Nexteer’s technology position. Commercial launches with multiple customers can create durable content growth as software-defined and electrified vehicles expand.
Negative Factors
Thin profitability and uneven cash conversion
Despite improved EBITDA, thin net margins leave earnings vulnerable to modest cost, warranty or pricing changes. Declining free cash flow and inconsistent conversion also limit the amount of internally generated capital available for investment and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong bookings and technology pipeline
A substantial bookings pipeline supports future program revenue, while Steer-by-Wire awards deepen Nexteer’s technology position. Commercial launches with multiple customers can create durable content growth as software-defined and electrified vehicles expand.
Read all positive factors
Nexteer Automotive Group (1316) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$12.16B
Dividend Yield3.05%
Average Volume (3M)13.51M
Price to Earnings (P/E)12.0
Beta (1Y)1.75
Revenue Growth5.98%
EPS Growth13.92%
CountryHK
Employees13,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.05
Shares Outstanding2,509,824,200
10 Day Avg. Volume10,714,582
30 Day Avg. Volume13,506,990
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)0.98
Price to Sales (P/S)0.45
P/FCF Ratio7.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$7.77Price Target Upside51.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)0.06
Revenue Forecast (FY)HK$4.80B
Nexteer Automotive Group Business Overview & Revenue Model
Company Description
Nexteer Automotive Group Limited, a motion control technology company, develops, manufactures, and supplies steering and driveline systems to original equipment manufacturer worldwide. It offers electric power steering (EPS) products, which includ...
How the Company Makes Money
Nexteer makes money primarily by supplying automotive components and systems to original equipment manufacturers (OEMs) under production supply contracts. Its largest revenue stream is selling steering systems—especially electric power steering (E...
Nexteer Automotive Group Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 17, 2027
Earnings Call Sentiment Positive
The call emphasized multiple clear strengths: record first-half revenue, double-digit adjusted EBITDA growth, a strong free cash flow swing (3x prior year), robust $3.3B bookings pipeline toward a $6B target, successful commercialization of Steer-by-Wire with two production launches, and improved regional margins (notably EMEASA). At the same time, the company faces headwinds from APAC pricing pressure and China OEM contract structures, ongoing commodity cost inflation, unresolved recovery for prior EV program cancellations, a discrete production outage in Mexico, and sensitivity to favorable FX and one-time recoveries. Overall, the company communicated sustained operational momentum, strong balance sheet flexibility, and credible technology-driven growth prospects, while flagging manageable but meaningful near-term risks.Positive Updates
Record First-Half Revenue
Achieved record H1 revenue of $2.3 billion, up ~3.9% year-over-year, outperforming global vehicle production by ~180 basis points (adjusted growth 0.8% excluding FX and commodities).
Negative Updates
Market and Pricing Headwinds in APAC/China
APAC faced customer pricing pressure and lack of escalation on many China OEM contracts; management noted pricing headwinds in APAC and pricing pressures contributed to offsetting volume/launch benefits. APAC bookings contribution fell to ~34% in H1 (versus 45% for FY2025).
Read all updates
Q2-2026 Updates
Positive
Negative
Record First-Half Revenue
Achieved record H1 revenue of $2.3 billion, up ~3.9% year-over-year, outperforming global vehicle production by ~180 basis points (adjusted growth 0.8% excluding FX and commodities).
Read all positive updates
Company Guidance
Management guided that despite a softer vehicle production outlook (H1 volumes ~1% below prior year and H2 volumes expected ~3% YoY decline), Nexteer remains on track for another year of record revenue (H1 revenue $2.3B, +3.9% YoY) and to outgrow the market by 200–300 basis points for the full year (vs. 180 bps outperformance in H1); they reiterated a full‑year bookings target of $6.0B after $3.3B of H1 bookings and said additional Steer‑by‑Wire program launches are expected in H2. Financially, management expects continued margin expansion and operating momentum after H1 adjusted EBITDA of $263M (11.3% margin, +100 bps YoY), strong cash conversion (H1 free cash flow $109M, cash from operations $262M), and a solid balance sheet/liquidity position ($597M cash, $51M gross debt, $516M net cash, $968M total liquidity). They also guided a full‑year effective tax rate slightly below 25% (long‑term rate in the high‑teens), noted $8M of tariff recoveries in H1, and said negotiations on North America EV program recoveries are ongoing with no definitive recovery amount provided.Nexteer Automotive Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.67B | 4.58B | 4.28B | 4.21B | 3.84B | 3.36B |
| Gross Profit | 537.47M | 529.32M | 481.42M | 368.59M | 367.15M | 363.43M |
| EBITDA | 430.10M | 349.63M | 302.05M | 357.48M | 362.74M | 370.10M |
| Net Income | 124.12M | 102.00M | 61.72M | 36.74M | 58.01M | 118.44M |
Balance Sheet | ||||||
| Total Assets | 3.93B | 3.77B | 3.48B | 3.40B | 3.34B | 3.21B |
| Cash, Cash Equivalents and Short-Term Investments | 596.53M | 520.75M | 422.28M | 311.74M | 245.93M | 326.52M |
| Total Debt | 80.95M | 87.02M | 91.59M | 100.39M | 110.71M | 146.76M |
| Total Liabilities | 1.72B | 1.61B | 1.45B | 1.39B | 1.36B | 1.20B |
| Stockholders Equity | 2.15B | 2.11B | 1.98B | 1.96B | 1.93B | 1.95B |
Cash Flow | ||||||
| Free Cash Flow | 361.78M | 267.18M | 164.89M | 91.91M | 173.41M | 145.78M |
| Operating Cash Flow | 533.05M | 405.53M | 446.23M | 404.12M | 293.76M | 287.38M |
| Investing Cash Flow | -333.05M | -281.41M | -279.79M | -299.15M | -263.47M | -285.66M |
| Financing Cash Flow | -66.02M | -61.61M | -43.16M | -38.40M | -85.18M | -215.45M |
Nexteer Automotive Group Technical Analysis
Negative
5.14
Price Trends
4.52
Positive
4.58
Positive
5.40
Negative
Market Momentum
0.08
Positive
43.81
Neutral
12.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1316, the sentiment is Negative. The current price of 5.14 is above the 20-day moving average (MA) of 5.08, above the 50-day MA of 4.52, and below the 200-day MA of 5.40, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 12.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1316.
Nexteer Automotive Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$162.85B | 16.66 | 22.56% | 4.30% | 13.06% | -0.41% | |
72 Outperform | HK$12.16B | 12.01 | 5.82% | 3.05% | 5.98% | 13.92% | |
70 Outperform | HK$29.40B | 8.42 | 12.03% | 6.42% | 14.21% | 14.88% | |
69 Neutral | HK$23.27B | 34.30 | 5.59% | ― | 38.53% | 341.50% | |
68 Neutral | HK$18.06B | 11.17 | 7.18% | 3.26% | 0.22% | -23.29% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | HK$5.76B | -91.92 | -5.52% | 5.59% | -2.65% | 69.13% |
* Consumer Cyclical Sector Average
HK:1316
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Nexteer Automotive Group Corporate Events
Nexteer Automotive Delivers Stronger Interim Profit on Higher Revenue
Aug 12, 2026
Nexteer Automotive posted unaudited interim results for the six months ended June 30, 2026, showing revenue of US$2.33 billion, up from US$2.24 billion a year earlier. Profit for the period rose to US$90.32 million from US$69.01 million, with earn...
Nexteer Schedules Board Meeting to Approve 2026 Interim Results
Jul 31, 2026
Nexteer Automotive Group has scheduled a board meeting for August 12, 2026 to review and approve its interim results for the six months ended June 30, 2026 and to consider the declaration of an interim dividend. The board session, led by Chairman ...
Nexteer Shareholders Approve All Resolutions at 2026 AGM
Jun 17, 2026
Nexteer Automotive Group reported that all resolutions proposed at its 17 June 2026 annual general meeting were approved by shareholders via poll voting. Investors endorsed the audited financial statements for the year ended 31 December 2025 and b...
Nexteer Sets Final 2025 Dividend and Confirms HKD Payout Terms
Jun 17, 2026
Nexteer Automotive Group Limited has declared a final ordinary cash dividend of USD 0.0183 per share for the financial year ended 31 December 2025, with shareholder approval granted on 17 June 2026. The dividend will be paid in Hong Kong dollars a...
Nexteer Sets 2026 AGM to Approve 2025 Results, Dividend and Share Issuance Mandate
May 21, 2026
Nexteer Automotive Group has convened its annual general meeting for June 17, 2026 in Beijing, where shareholders will review the audited consolidated financial statements for the year ended December 31, 2025 and vote on a proposed final dividend ...
Nexteer Reshapes Senior Leadership, Elevates Milavec and Li to Key Global Roles
May 19, 2026
Nexteer Automotive has reshaped its senior leadership, appointing Executive Director and President Robin Zane Milavec as Global Chief Operating Officer while he relinquishes the Chief Technology Officer role, effective May 16, 2026. Milavec, a 36-...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.