[ET Net News Agency, 19 August 2019] Daiwa Research lowered its target price for
Nexteer Automotive Group (01316) to HK$7.4 from HK$13.4 and maintained its "outperform"
rating.
The research house hosted a post-results NDR for Nexteer on Friday. It noted that
management is looking for gradual improvement in fundamentals from 2H after the bottom in
1H. The company expects sales in China to be in line with the market in 2H, amid new order
contributions from SAIC, GAC, and BYD (01211). For the US market, management sees the
revenue decline on order loss narrowing, which is likely to lead to flat HoH revenue in
2H, backed by new programme launches from Ford.
For 2020-21, Daiwa expects revenue from China to grow on a market recovery and flat US
operation. It expects the Europe market to be robust in 2020-21E, led by the ramp-up of
its Morocco plant, which commenced in June 2019.
Daiwa cut its 2019-21 EPS forecasts by 24-30% to factor in the deteriorating
revenue/margins seen in 1H. (KL)
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01316 NEXTEER
Nominal 
2.570 +0.060 (+2.390%) Research Report
19/08/2019 09:42
{I-bank focus}Daiwa lowers Nexteer (01316) to HK$7.4
| Remark: | Real time quote last updated: 20/09/2024 18:00 |
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