Daiwa: Significantly raised NEXTEER (01316) target price to 6 Hong Kong dollars, maintaining "outperform" rating.

Yamato Securities released a research report stating that the target price for NEXTEER (01316) has been raised from 3.1 Hong Kong dollars to 6 Hong Kong dollars, maintaining an "outperform" rating. The firm raised the company's earnings per share forecast for the next two years by 23% to 25%, reflecting stronger-than-expected business expansion in China, as well as an improved outlook for Tesla's Cybercab mass production. The firm mentioned that Tesla plans to dispatch more self-driving taxis in Austin in the coming weeks, and plans to produce 2 million units of the self-driving taxi model Cybercab next year. As the only line-controlled steering supplier for Tesla's Cybercab, NEXTEER will benefit from this. In addition, the company is also a core steering system supplier for BYD Company Limited, Xiaopeng, Jikke, Xiaomi, Ideal, AIAN, and Chang'an, and is expanding to other brands. The company is upgrading its product portfolio to supply products with higher average selling prices.