[ET Net News Agency, 15 November 2019] Goldman Sachs initiated coverage on Nexteer
Automotive (01316) with a "neutral" rating and a target price of HK$6.6.
While scale benefits should kick in down the line, the research house sees margin
concerns before then - steep investments are needed in Advanced Driver Assistance System
(ADAS)/Autonomous Vehicle (AV) technologies, amid growing pricing pressure among Chinese
OEMs in a highly penetrated Electric Power Steering (EPS) market, especially given the
industry downturn.
On the other hand, Goldman said the next major technology shift - largely driven by
ADAS/AVs - should be a game-changer for Nexteer, as it presents higher content/margin
opportunities and a chance for better-positioned players such as Nexteer to gain market
share. Goldman expects steering systems to upgrade to Steering by Wire (SBW) from the
current EPS, as required for Level 3 and above autonomy, with Nexteer one of the leading
global players in by-wire motion control. (KL)
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01316 NEXTEER
Nominal 
3.950 +0.030 (+0.765%) Others
15/11/2019 17:17
{I-bank focus}Goldman starts Nexteer (01316) at HK$6.6
| Remark: | Real time quote last updated: 18/04/2024 17:59 |
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