tiprankstipranks
Trending News
More News >
Nexteer Automotive Group Limited (HK:1316)
:1316
Advertisement

Nexteer Automotive Group (1316) AI Stock Analysis

Compare
2 Followers

Top Page

HK:1316

Nexteer Automotive Group

(OTC:1316)

Rating:79Outperform
Price Target:
HK$7.50
▲(15.74% Upside)
Nexteer Automotive Group's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is a key driver of its stock score. The positive technical indicators further enhance its attractiveness, supported by a favorable earnings call that highlights strategic growth and innovation. However, the valuation is moderate, and challenges in North America present some risks.
Positive Factors
New Market Opportunities
New bookings from Chinese automakers reached a new high of 39%, surpassing the previous year's 28%, indicating strong demand in China.
Revenue and Earnings
Nexteer delivered a convincing earnings beat, easing fears over a global auto production slowdown.
Technological Innovation
Nexteer is set to mass produce its SbW products, which will serve as a new revenue driver, with positive momentum in industry adoption.
Negative Factors
Future Outlook
The FY25F new bookings guidance of USD5bn is down 17% year-over-year, indicating a muted outlook.
Global Market Challenges
Weaker global auto sales and potentially higher US tariffs may slow growth at Nexteer’s US operations.

Nexteer Automotive Group (1316) vs. iShares MSCI Hong Kong ETF (EWH)

Nexteer Automotive Group Business Overview & Revenue Model

Company DescriptionNexteer Automotive Group Limited, an investment holding company, designs, develops, manufactures, and distributes steering and driveline systems and components for automobile manufacturers and other automotive-related companies. It offers electric power steering (EPS) products, such as column, pinion, and rack assist, as well as dual pinion EPS; EPS remanufacturing products, intermediate shafts, and modular power packs; and hydraulic power steering products, such as magnetic torque overlay, smart flow pumps, power steering pumps and reservoirs, rack and pinion steering gears, and recirculating ball steering gears, as well as aftermarket products. The company also provides steering columns, including power tilts and telescopes, power rakes and telescopes, one-touch adjustable columns, manual rakes and telescopes, non-adjustable columns, intermediate shafts, transmission shifters, and stowable steering column, as well as electronics, modules, and sub-assemblies. In addition, it offers driveline products comprising front and rear wheel half shafts, intermediate drive shafts, and propeller shaft constant velocity joints. Further, the company provides advanced driver assistance systems and automated driving technologies, which include steer by wire, steering on demand system, quiet wheel steering, magnetic torque overlay, and high availability EPS for resilient operational availability, as well as offers customer support and engineering center services. It operates in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company was founded in 1906 and is headquartered in Auburn Hills, Michigan. Nexteer Automotive Group Limited is a subsidiary of Nexteer Automotive (Hong Kong) Holdings Limited.
How the Company Makes MoneyNexteer Automotive Group generates revenue primarily through the sale of its advanced steering and driveline systems to major automotive OEMs. The company's key revenue streams include direct sales of its electric power steering (EPS) systems, hydraulic power steering (HPS) systems, steering columns, and driveline systems. Nexteer maintains longstanding relationships with leading global automotive manufacturers, which contribute significantly to its earnings. The company also invests in research and development to continuously innovate and enhance its product offerings, positioning itself as a preferred supplier in the competitive automotive market. Nexteer's ability to adapt to the increasing demand for electric and autonomous vehicles further supports its financial success.

Nexteer Automotive Group Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with record revenue and significant growth in both EBITDA and net profit. Key technological advancements and strategic expansions in the APAC region highlight the company's strategic direction. However, the call also addressed some challenges, including supplier issues and tariff impacts in North America, and a notable slowdown in bookings. Despite these challenges, the company maintains a positive outlook for the second half of the year.
Q2-2025 Updates
Positive Updates
Record-Breaking First Half Revenue
Nexteer achieved a record first-half 2025 revenue of $2.2 billion, increasing by 6.8% compared to the prior year.
EBITDA and Profit Growth
EBITDA grew by 16.8% year-over-year, with margins expanding by 90 basis points. Net profit increased fourfold, with a margin improvement of 210 basis points.
Significant New Business Bookings
Secured $1.5 billion in new business bookings, with key wins in North America, APAC, and Europe.
Technological Advancements
Expanded Motion-by-Wire chassis control technologies, including Steer-by-Wire, Rear Wheel Steering, and Electro-Mechanical Braking.
Expansion in APAC Region
Opened a new state-of-the-art facility in Changshu and broke ground on a new smart manufacturing facility in Liuzhou.
Negative Updates
Supplier Challenges in North America
North America faced issues with troubled suppliers, resulting in a $7 million cost impact.
Tariff Costs
Net tariff costs impacted earnings by $2 million in the first half, with ongoing efforts to mitigate these costs.
Booking Slowdown in North America
A 30% year-over-year decline in booking wins, particularly in North America, due to less customer rollout opportunities.
Company Guidance
During the Nexteer Automotive Group Limited 2025 Interim Results Conference Call, several key metrics and guidance highlights were discussed. The company launched a record 31 programs in the first half of 2025, with 23 new or conquest awards, including significant achievements like the first Dual Pinion EPS launch with a Chinese OEM and a $1.5 billion value in new business bookings. Revenue reached a record $2.2 billion, marking a 6.8% increase year-over-year, mainly driven by growth in APAC with Chinese OEMs. EBITDA grew by 16.8%, with margins expanding by 90 basis points, while net profit increased fourfold to $63 million, and free cash flow was positive at $37 million. The company remains on track to achieve its $5 billion booking target for the year. Operational efficiency and strategic expansions in China, including new facilities in Changshu and Liuzhou, are emphasized as critical focus areas. Guidance also noted potential impacts of tariffs and restructuring costs, with a plan to mitigate tariff costs aiming for a net neutral impact by year-end. The company is optimistic about future growth driven by continued technology leadership and strategic market positioning, particularly in China.

Nexteer Automotive Group Financial Statement Overview

Summary
Nexteer Automotive Group shows positive financial health with steady revenue growth and improved profitability. The balance sheet is strong with low leverage and substantial equity. Cash flow performance is robust, underscoring effective cash management. Nevertheless, there is potential for enhancing operational margins to further strengthen financial performance.
Income Statement
75
Positive
The company has shown consistent revenue growth with a 1.65% increase in 2024 from 2023. Gross profit margins have improved to 11.26%, reflecting better cost management. Net profit margin rose to 1.44%, indicating a slight improvement in profitability. However, EBIT and EBITDA margins are relatively low at 2.68% and 7.06%, respectively, suggesting room for operational efficiency improvements.
Balance Sheet
80
Positive
The debt-to-equity ratio is low at 0.05, indicating minimal leverage and a strong equity base. Return on equity stands at 3.12%, showing moderate profitability. The equity ratio is 56.87%, signifying a solid financial structure with more than half of the assets financed by equity.
Cash Flow
78
Positive
There is a robust free cash flow growth of 79.37% from 2023 to 2024. The operating cash flow to net income ratio is strong at 7.23, indicating efficient cash conversion. The free cash flow to net income ratio is 2.67, reflecting healthy cash flow generation relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.28B4.21B3.84B3.36B3.03B
Gross Profit481.42M368.59M367.15M363.43M407.94M
EBITDA302.05M357.48M362.74M370.10M348.89M
Net Income61.72M36.74M58.01M118.44M116.77M
Balance Sheet
Total Assets3.48B3.40B3.34B3.21B3.31B
Cash, Cash Equivalents and Short-Term Investments422.28M311.74M245.93M326.52M553.42M
Total Debt91.59M100.39M110.71M146.76M305.99M
Total Liabilities1.45B1.39B1.36B1.20B1.38B
Stockholders Equity1.98B1.96B1.93B1.95B1.88B
Cash Flow
Free Cash Flow164.89M91.91M173.41M145.78M270.10M
Operating Cash Flow446.23M404.12M293.76M287.38M419.85M
Investing Cash Flow-279.79M-299.15M-263.47M-285.66M-288.00M
Financing Cash Flow-43.16M-38.40M-85.18M-215.45M-186.94M

Nexteer Automotive Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.48
Price Trends
50DMA
6.19
Positive
100DMA
5.74
Positive
200DMA
4.88
Positive
Market Momentum
MACD
0.12
Positive
RSI
51.53
Neutral
STOCH
29.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1316, the sentiment is Positive. The current price of 6.48 is below the 20-day moving average (MA) of 6.57, above the 50-day MA of 6.19, and above the 200-day MA of 4.88, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1316.

Nexteer Automotive Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$16.39B19.215.45%1.04%4.73%492.16%
61
Neutral
$17.97B12.87-5.29%2.97%1.26%-14.45%
$3.17B13.6410.07%2.00%
$4.32B14.3712.26%1.31%
€983.88M19.749.35%
67
Neutral
HK$4.42B211.071.95%0.36%30.75%63.75%
55
Neutral
HK$1.61B9.266.62%4.26%13.35%-38.32%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1316
Nexteer Automotive Group
6.48
4.03
164.81%
JELCF
Johnson Electric Holdings
3.89
2.49
177.86%
MNTHF
Minth Group
4.42
2.76
166.27%
DE:W4K1
Zhejiang Shibao Co. Ltd. Class H
0.52
0.28
116.67%
HK:1760
Intron Technology Holdings Ltd.
1.48
0.47
46.53%
HK:2025
Ruifeng Power Group Co., Ltd.
5.54
4.38
377.59%

Nexteer Automotive Group Corporate Events

Nexteer Automotive Announces Leadership Reshuffle
Aug 13, 2025

Nexteer Automotive Group Limited announced significant leadership changes effective August 13, 2025, with Mr. LEI Zili resigning as Chairman and CEO and being redesignated as a non-executive Director. Mr. DING Fengtao has been appointed as the new Chairman and CEO, marking a strategic shift in leadership that could influence the company’s future direction and stakeholder relations.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Announces Board Composition and Roles
Aug 13, 2025

Nexteer Automotive Group Limited has announced the composition of its board of directors and their respective roles within the company. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit and Compliance Committee and the Remuneration and Nomination Committee. This announcement provides clarity on the governance structure of Nexteer Automotive, which is crucial for stakeholders to understand the company’s leadership and decision-making processes.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Reports Strong Interim Financial Results for 2025
Aug 13, 2025

Nexteer Automotive Group Limited reported a significant increase in its financial performance for the first half of 2025, with revenue rising to US$2.24 billion and profit for the period reaching US$69 million. This improvement in profitability, driven by increased operating profit and reduced finance costs, highlights the company’s strengthened market position and operational efficiency, benefiting its stakeholders.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Announces Board Meeting to Review Interim Results
Aug 1, 2025

Nexteer Automotive Group Limited has announced a board meeting scheduled for August 13, 2025, to consider and approve the interim results for the first half of the year and discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and strategic decisions, potentially impacting stakeholders and market positioning.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Announces AGM Results and Director Changes
Jun 18, 2025

Nexteer Automotive Group Limited announced the results of its Annual General Meeting held on June 18, 2025, where all proposed resolutions were approved by shareholders. Key outcomes included the adoption of the company’s financial statements, the declaration of a final dividend, the re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as auditors. These decisions are expected to reinforce the company’s governance and operational stability, potentially impacting its market position and stakeholder confidence positively.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Declares Final Dividend for 2024
Jun 18, 2025

Nexteer Automotive Group Limited has announced a final cash dividend of USD 0.0087 per share for the financial year ending December 31, 2024. The dividend, payable in Hong Kong dollars at HKD 0.068 per share, will be distributed on July 9, 2025, following shareholder approval on June 18, 2025. This announcement reflects Nexteer’s commitment to returning value to its shareholders and may influence investor perceptions and market positioning.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Updates Board Composition
Jun 18, 2025

Nexteer Automotive Group has announced the composition of its board of directors, detailing the roles and functions of each member. This update reflects the company’s commitment to maintaining a structured governance framework, which is crucial for its strategic direction and operational efficiency.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

Nexteer Automotive Announces 2025 Annual General Meeting and Key Resolutions
May 26, 2025

Nexteer Automotive Group Limited has announced its Annual General Meeting scheduled for June 18, 2025, in Hong Kong. Key resolutions include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditors. The meeting will also consider authorizing the board to allot and issue additional shares, reflecting the company’s strategic focus on growth and shareholder value.

The most recent analyst rating on (HK:1316) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on Nexteer Automotive Group stock, see the HK:1316 Stock Forecast page.

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.Date of analysis: Aug 19, 2025