HK Stock Market Move | Auto parts stocks across the board are falling, intensifying competition compounded by rising raw material prices. Profit pressure on listed automotive component companies in the first quarter.

Auto parts stocks are falling across the board. As of the time of writing, NEXTEER (01316) is down 7.24% at HK$4.87; MINTH GROUP (00425) is down 3.9% at HK$37.9; DCH Holdings (00179) is down 4.02% at HK$34.86; Zhejiang Shibao (01057) is down 2.41% at HK$4.86. On the news front, profits of listed auto parts companies in the first quarter are under pressure. Analysts point out that the rapid development of intelligent driving, solid-state batteries, and other intelligent connected technologies is not only driving the improvement of industry technology levels but also intensifying market competition, leading to profit pressures on auto parts companies. In addition, rising raw material prices have become a major factor affecting the profits of auto parts companies. UBS released a research report stating that NEXTEER's management revealed at the 2026 Asia Investment Conference that they have launched two Steer-by-Wire (SbW) projects so far this year. The management expects to receive more SbW and Electronic Mechanical Braking (EMB) orders in 2026, with the Rear Wheel Steering (RWS) project planned to start production in the second half of this year. Management expects stable year-on-year revenue growth in the 2026 fiscal year, but notes that rising commodity prices may put pressure on profit growth, especially in China. The company is increasing efforts to optimize costs and improve profitability.