Yamada: Raises NEXTEER (01316) target price to 7 Hong Kong dollars, reiterates outperform rating.

Nomura Research Institute announced that NEXTEER (01316) has continued to reduce costs and improve profit margins over the past few years. The company is believed to have benefited from this since the second half of last year, and it is expected that the group's future profitability will continue to improve. Nomura reiterated its "outperform" rating for NEXTEER, raising the target price from 6.8 Hong Kong dollars to 7 Hong Kong dollars. The bank also raised the group's earnings forecast for 2026 to 2027 by 7% to 9% to reflect higher-than-expected profit margins. The report mentioned that NEXTEER has received multiple orders in the first half of this year for the integration of steer-by-wire, rear wheel steer, and related software into the vehicle's control system. The company expects total orders for this year to reach 5 billion US dollars, with 1.5 billion US dollars in orders received in the first half of the year and an expected additional 3.5 billion US dollars in orders in the second half of the year.