Great Wall Securities: Raises the target price for Naisite to HKD 11.4, rating "Buy"

Daiwa Capital Markets published a report stating that Nexperia's mid-term revenue increased by 3.9% year-on-year to $2.329 billion, a record high, while net profit rose by 35.2% to approximately $85.58 million. Management expects this year's effective tax rate to be slightly below 25%, compared to the previous forecast of 33%. The report indicates that last year's tariff costs of approximately $8 million have been recovered, but the $24 million costs associated with the cancellation of the North American electric vehicle project have not yet been accounted for. The backlog surged to $3.3 billion, a year-on-year increase of 120%, and management reaffirmed the annual target of $6 billion. The first steer-by-wire project has gone into production, but management expects limited revenue contribution from this technology to the group before 2030. In response to the latest performance, Daiwa has revised Nexperia's revenue forecast for 2026 to 2028 down by 0.9% to 1.1%, maintaining the target price-to-earnings ratio at 20 times, raising the target price from HK$8.30 to HK$11.40, with a "Buy" rating.