Nexteer Automotive Group Limited (HK:1316)
:1316
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Nexteer Automotive Group
(1316)
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Rating:62Neutral
Price Target:
HK$5.50
▲(3.19% Upside)
Action:ReiteratedDate:03/26/26
The score is driven mainly by solid underlying financial stability (very low leverage/net cash) and a positive earnings-call outlook for above-market growth and margin expansion. These are tempered by weak technicals (clear downtrend despite oversold readings) and a valuation that is not especially cheap relative to modest profitability and recent free-cash-flow softness.
Positive Factors
Conservative balance sheet / net cash
Very low leverage and significant net cash provide durable financial flexibility. This supports program funding, capital investment in APAC manufacturing, R&D for Motion‑by‑Wire, and continued shareholder returns while lowering refinancing and covenant risks across OEM cycles.
Negative Factors
Free cash flow softness
Declining FCF and weak conversion reduces internal funding for capex and program ramp costs. Persistent working‑capital and one‑off tax effects signal volatility in cash conversion, constraining reinvestment capacity and tightening the margin for error on strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / net cash
Very low leverage and significant net cash provide durable financial flexibility. This supports program funding, capital investment in APAC manufacturing, R&D for Motion‑by‑Wire, and continued shareholder returns while lowering refinancing and covenant risks across OEM cycles.
Read all positive factors
Nexteer Automotive Group (1316) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$12.72B
Dividend Yield1.02%
Average Volume (3M)9.03M
Price to Earnings (P/E)13.4
Beta (1Y)1.68
Revenue Growth7.11%
EPS Growth65.26%
CountryHK
Employees12,600
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.12
Shares Outstanding2,509,824,200
10 Day Avg. Volume7,973,400
30 Day Avg. Volume9,034,957
Financial Highlights & Ratios
PEG Ratio0.30
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$7.94Price Target Upside49.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)0.06
Revenue Forecast (FY)HK$4.81B
Nexteer Automotive Group Business Overview & Revenue Model
Company Description
Nexteer 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...
How the Company Makes Money
Nexteer primarily makes money by supplying steering and driveline systems to automotive OEMs under production supply contracts, earning revenue largely from the sale of high-volume, vehicle-platform-specific components delivered to OEM assembly pl...
Nexteer Automotive Group Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial picture: record revenue for a third consecutive year, strong bookings ($4.9B) including strategic Steer-by-Wire wins, robust APAC growth, EBITDA growth and margin expansion, technology progress on Motion-by-Wire/EMB, and a strong balance sheet with increased dividend. Offsetting these positives are manageable but material challenges: program impairments related to North American EV cancellations, reduced free cash flow versus prior year, supplier and tariff headwinds, North America margin pressure, and ongoing geopolitical uncertainties. Overall, the company appears to be executing well on growth, diversification and technology leadership while actively addressing the one-off and regional challenges.Positive Updates
Record Revenue and Year-over-Year Growth
Total revenue reached $4.6 billion in FY2025, up 7.2% YoY, marking record revenue for the third consecutive year and outperforming market growth by ~320 basis points on an adjusted basis (6.9% adjusted growth).
Negative Updates
Program Impairments and Customer Cancellations
Recorded $24 million net program impairment charges in 2025 (with $32M gross impairments and $8M recoveries), driven by North America EV program cancellations and volume reductions; similar impairment of $23M in 2024. Management expects additional recoveries in 2026 but cancellations impacted results and visibility.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Year-over-Year Growth
Total revenue reached $4.6 billion in FY2025, up 7.2% YoY, marking record revenue for the third consecutive year and outperforming market growth by ~320 basis points on an adjusted basis (6.9% adjusted growth).
Read all positive updates
Company Guidance
Nexteer guided that despite modestly lower global OEM production in 2026 (company assumes global market volumes down ~1%), it expects to deliver another year of record revenue with above‑market growth of roughly 200–300 basis points, driven primarily by APAC (China); management expects continued margin expansion from net performance improvements and volume leverage (APAC EBITDA margins targeted around 16–17%), improvement in EMEASA and North America as one‑time headwinds abate, an effective tax rate slightly below 30% in 2026 (long‑term high‑teens), and initial revenue recognition for Motion‑by‑Wire beginning in 2026, while noting ongoing geopolitical and trade risks.Nexteer Automotive Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.59B | 4.28B | 4.21B | 3.84B | 3.36B |
| Gross Profit | 533.30M | 481.42M | 368.59M | 367.15M | 363.43M |
| EBITDA | 470.75M | 302.05M | 357.48M | 362.74M | 370.10M |
| Net Income | 102.15M | 61.72M | 36.74M | 58.01M | 118.44M |
Balance Sheet | |||||
| Total Assets | 3.77B | 3.48B | 3.40B | 3.34B | 3.21B |
| Cash, Cash Equivalents and Short-Term Investments | 500.67M | 422.28M | 311.74M | 245.93M | 326.52M |
| Total Debt | 87.02M | 91.59M | 100.39M | 110.71M | 146.76M |
| Total Liabilities | 1.61B | 1.45B | 1.39B | 1.36B | 1.20B |
| Stockholders Equity | 2.11B | 1.98B | 1.96B | 1.93B | 1.95B |
Cash Flow | |||||
| Free Cash Flow | 267.18M | 164.89M | 91.91M | 173.41M | 145.78M |
| Operating Cash Flow | 405.53M | 446.23M | 404.12M | 293.76M | 287.38M |
| Investing Cash Flow | -281.41M | -279.79M | -299.15M | -263.47M | -285.66M |
| Financing Cash Flow | -61.61M | -43.16M | -38.40M | -85.18M | -215.45M |
Nexteer Automotive Group Technical Analysis
Negative
5.33
Price Trends
6.37
Negative
6.44
Negative
6.59
Negative
Market Momentum
-0.30
Negative
40.55
Neutral
42.18
Neutral
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 5.33 is below the 20-day moving average (MA) of 5.43, below the 50-day MA of 6.37, and below the 200-day MA of 6.59, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 40.55 is Neutral, neither overbought nor oversold. The STOCH value of 42.18 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$42.03B | 12.46 | 12.26% | 1.39% | 11.26% | 15.82% | |
73 Outperform | HK$173.03B | 19.54 | 24.34% | 4.35% | 16.74% | 24.19% | |
64 Neutral | HK$19.41B | 9.04 | 9.88% | 2.03% | -3.02% | 11.38% | |
62 Neutral | HK$12.72B | 13.39 | 4.89% | 1.02% | 7.11% | 65.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
44 Neutral | HK$5.79B | -75.86 | -13.62% | ― | 6.97% | 76.15% |
* Consumer Cyclical Sector Average
HK:1316
Nexteer Automotive Group
4.98
0.19
4.05%
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HK:2525
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-46.90
-20.18%
Nexteer Automotive Group Corporate Events
Nexteer Automotive Declares Final 2025 Dividend and Sets Payout Timetable
Mar 24, 2026
Nexteer Automotive Group Limited has declared a final ordinary dividend of USD 0.0183 per share for the financial year ended 31 December 2025, underscoring its commitment to returning capital to shareholders. The dividend, subject to shareholder a...
Nexteer Automotive Lifts 2025 Revenue and Earnings on Stronger Operations
Mar 24, 2026
Nexteer Automotive reported higher revenue of US$4.58 billion for 2025, up from US$4.28 billion in 2024, driven by stronger sales that lifted gross profit to US$523.0 million despite rising cost of sales. Operating profit increased to US$162.5 mil...
Nexteer Sets March 24 Board Meeting to Approve 2025 Results and Consider Dividend
Mar 10, 2026
Nexteer Automotive Group has scheduled a board meeting for March 24, 2026 to review and approve the annual results for the year ended December 31, 2025. At the same meeting, the board will consider whether to recommend a final dividend and may add...
Nexteer Automotive Details Board Composition and Governance Committee Roles
Jan 19, 2026
Nexteer Automotive Group Limited has announced the current composition of its board of directors, led by Chief Executive Officer and Chairman Ding Fengtao and executive director Robin Zane Milavec, alongside a slate of non-executive and independen...
Nexteer Automotive COO and Executive Director Hervé Boyer to Resign in January 2026
Jan 15, 2026
Nexteer Automotive Group has announced the resignation of executive director, senior vice president and global chief operating officer Hervé Paul Gino Boyer, effective January 19, 2026, as he departs to pursue a new opportunity. The company s...
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.