Guotai Haitong: Maintains "buy" rating on NEXTEER (01316), target price raised to 9.45 Hong Kong dollars.

Guotai Haitong released a research report stating that it maintains a "buy" rating for NEXTEER (01316). Considering that multiple R-EPS models in the Asia-Pacific region entered mass production in the third quarter, and it is expected to receive more orders for steer-by-wire systems in the fourth quarter, the company's operating situation is deemed stable. The EPS forecast for 2025-2027 is maintained at $0.06/0.08/0.10, with a reference to comparable companies, and NEXTEER is given a 20 times PE multiple for 2025. The target price has been raised to 9.45 Hong Kong dollars (converted at a rate of 1 US dollar = 7.7 Hong Kong dollars). The report states that in the third quarter of 2025, R-EPS models including the Ideal i6, i8, Jikexing 9X, and Chery Jetour G700 will enter mass production. In the first three quarters of 2025, the Asia-Pacific region contributed 49% of the order amount, with an expected total order amount of 5 billion US dollars for the year. The steer-by-wire system is expected to receive more orders in the fourth quarter of 2025. NEXTEER has already received the steer-by-wire system orders from a global leader in electric vehicles, supporting Level 4 autonomous driving and mobility as a service. The innovative product, a direct drive feel steering simulator, provides better steering simulation and is suitable for compact, lightweight designs, supporting both low and high mounting designs, empowering both consumers and car manufacturers at the same time.