GTHT has issued a research report maintaining an "Overweight" rating on NEXTEER (01316). The report highlights that multiple R-EPS projects in the Asia-Pacific region entered mass production in Q3, with steer-by-wire projects expected to secure additional contracts in Q4. The firm's stable operational performance supports the unchanged EPS forecasts of $0.06, $0.08, and $0.10 for 2025–2027.
Based on peer comparisons, NEXTEER is valued at 20x 2025 P/E, leading to an upward revision of the target price to HK$9.45 (converted at 1 USD = 7.7 HKD).
Key developments include the mass production of R-EPS for models such as Li Auto's i6 and i8, Zeekr 9X, and Chery Jetour G700 in Q3 2025. The Asia-Pacific region accounted for 49% of order value in the first three quarters, with full-year orders projected at $5 billion. Steer-by-wire is anticipated to secure another contract in Q4 2025, following NEXTEER’s earlier win from a global EV leader supporting L4 autonomous driving and mobility-as-a-service.
Additionally, NEXTEER has launched an innovative direct-drive steering feel simulator, offering enhanced feedback while accommodating compact, lightweight designs for both low and high mounting positions—benefiting both consumers and automakers.