HK Stock Market Move | NEXTEER (01316) fell by more than 10% again, and the profit release of wire control products still needs time. North American revenue may be affected by the increase in US tariffs.

NEXTEER (01316) fell by more than 10%, reaching an 8.05% decline at the time of publication, with a price of 5.14 Hong Kong dollars and a trading volume of 1.18 billion Hong Kong dollars. China International Bank has released a research report stating that NEXTEER's first line-controlled steering project developed for China's leading new energy vehicle market will start production in 2026, while the production time for line control projects developed by two other global automotive giants has been delayed until 2028. The bank believes that the profit potential of line control products still needs time to be realized. In addition, around 40% to 45% of NEXTEER's revenue in the North American region comes from Mexican factories and will be affected by the increased tariffs imposed by the Trump administration. JPMorgan Chase also mentioned that although the launch of BYD Company Limited's "Eye of the Sky" system may indicate that the Chinese automotive market will adopt "L2+" advanced autonomous driving functions more quickly, the bank does not see any direct benefits for line control steering applications. Line control steering was a major driver in NEXTEER's 50% stock price increase last week. Additionally, JPMorgan Chase downgraded NEXTEER's H-share rating from "buy" to "neutral", stating that the valuation of the stock has become reasonable after a sharp increase in the stock price, and therefore maintains its performance and earnings forecasts for the company unchanged, with a target price of 5.5 Hong Kong dollars.