HK Stock Market Move | NEXTEER(01316) falls more than 5%. Morgan Stanley believes whether the company can successfully pass on the increased costs and obtain OEM compensation will become a key variable affecting the gross profit margin.

NEXTEER (01316) fell more than 5%, dropping by 4.71% to HK$3.84 by the time of writing, with a turnover of HK$24.0523 million. On the news front, Morgan Stanley released a research report stating that it has lowered its profit forecast for NEXTEER for 2026-2027 by 5-10% to reflect weaker-than-expected car production in China and a significant increase in raw material costs leading to higher-than-expected pressure on gross margins. Morgan Stanley expects NEXTEER's revenue to grow by 7% annually in 2026, and whether they can successfully pass on the cost increases and receive OEM compensation will be a key variable in the gross margin for 2026.