Citigroup: Reiterate "Buy" rating on NEXTEER (01316) and raise target price to HK$8.

Citigroup has released a research report stating that NEXTEER's profit forecast for 2025 to 2026 has been raised by 6%, and the target price has been raised from HK$4.2 to HK$8, based on a PEG ratio of 0.7. The bank considers that NEXTEER's strong performance in the first quarter of this year, with a 60% year-on-year increase in orders, and the support from orders for electronic mechanical braking (EMB) and wire control braking products, have led to income growth in line with expectations, while the impact of US tariffs is lower than expected. The bank expects the company's net profit compound annual growth rate for 2025 to 2027 to be 29%, and with the strong recovery momentum in group profits, it believes that the valuation should be increased; reiterating a "buy" rating.