[ET Net News Agency, 21 August 2020] HSBC Global Research lowered its target price for
Nexteer Automotive (01316) to HK$5.9 from HK$6.6 and maintained its "buy" rating.
The research house said Nexteer reported a 1H revenue decline of 34% due to lockdowns in
multiple production lines globally. The company was still able to outperform the
respective markets in a challenging environment driven by the ramp-up in new production
facilities in Morocco.
Lower volume and pricing have dragged down EBITDA margins in all regions. However,
helped by successful cost reduction, Asia Pacific EBITDA was still resilient and even
recorded a slight increase compared to the 1H 2019 level.
HSBC believes Nexteer will be able to see a good recovery in its US sales in 2H. It
lowered its earnings forecasts by incorporating lower global production estimates. (KL)
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01316 NEXTEER
Nominal 
3.630 -0.320 (-8.101%) Research Report
21/08/2020 17:06
{I-bank focus}HSBC cuts Nexteer Automotive (01316) to HK$5.9
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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