Core Viewpoint - Nexteer launched 23 new projects in Q1 2025, with 60.9% focused on new energy vehicles (NEVs), driven by strong demand from Chinese NEV OEMs and significant bookings from North American clients [1] Group 1: Business Performance - The Company secured bookings totaling US$0.8 billion in Q1 2025, representing 16.0% of its full-year target of US$5.0 billion [1] - New energy vehicle projects accounted for 14 out of 23 new projects, highlighting the Company's focus on this sector [1] - The Company is actively developing new products, including Electro-Mechanical Braking (EMB) and enhancing its Rear Wheel Steering (RWS) systems [1] Group 2: Market Environment - The Company is facing manageable impacts from US tariffs, primarily affecting parts and raw materials from Canada and Mexico, with a 25% tariff on non-compliant automobile parts [1] - Most products exported from Mexico to the U.S. comply with USMCA, allowing them to maintain tariff-free status [1] - The Company is optimizing its supply chain and manufacturing strategies to mitigate market uncertainties and policy risks [1] Group 3: Regulatory Developments - The Trump administration plans to relax regulations on autonomous driving, which will benefit Nexteer's autonomous driving-related business, particularly in high-capacity EPS and advanced SBW and RWS business units [2] - The relaxation of compliance procedures for self-driving vehicles for non-commercial purposes is expected to further support the development of autonomous driving in the U.S. [2] Group 4: Investment Outlook - The Company maintains a "Buy" investment rating with a target price of HK$6.50 per share, reflecting a 15.6x 2025 PER [2]

Group 1 - The company launched 23 projects in Q1 2025, with 60.9% being new energy vehicle projects, totaling 14 projects, which account for 65.2% of all projects in the Asia-Pacific region [1] - Strong orders from Chinese new energy vehicle manufacturers were highlighted, covering REPS, DPEPS, and the latest RWS systems [1] - The company aims for an annual order target of $5 billion, with Q1 orders reaching $800 million, representing 16.0% of the annual target [1] Group 2 - The U.S. government proposed to ease regulations on autonomous vehicles, which will benefit the company's autonomous driving-related business and advanced steering systems [2] - The company is actively collaborating with clients and suppliers to optimize supply chains and production strategies to mitigate market uncertainties, especially regarding U.S. import policies [1] - The company is ensuring compensation from clients to offset costs related to non-exempt tariffs [1]

Group 1 - The Hang Seng Index fell by 0.81%, down 190 points, closing at 23,262 points, while the Hang Seng Tech Index decreased by 0.57% [1] - The Hong Kong stock market saw a trading volume of HKD 107.6 billion in the morning session [1] Group 2 - The resurgence of COVID-19 infections led to a 1.64% increase in the Hang Seng Biotechnology Index [2] - Shandong Xinhua Pharmaceutical rose by 8.95%, while three other pharmaceutical companies, including Sanofi and China Biopharmaceutical, saw gains of 7% and 3.85% respectively [2] - Major airlines experienced a collective rise, with China Southern Airlines up by 2.59% and Air China increasing by 1.4% due to positive operational data for April [2] Group 3 - New World Development's subsidiary, Melco Resorts, reported a 14% year-on-year increase in adjusted EBITDA for the first quarter, exceeding market expectations, leading to a more than 13% rise in its stock [2] - Nexperia saw its stock rise by over 6% due to increased penetration of its SBW systems driven by autonomous driving [2] - Financial One Account rose by 13% after its controlling shareholder, Ping An Insurance, proposed a privatization offer at HKD 2.068 per share [2] Group 4 - Hang Seng Bank's stock fell nearly 4% amid ongoing layoffs and an increase in the non-performing loan ratio to 6.12% last year [2] - SouthGobi Resources experienced a nearly 17% drop due to operational losses in the first quarter and a decline in average selling prices affected by the downturn in the coal market [2] Group 5 - Alibaba's stock dropped over 5% following its fourth fiscal quarter earnings report, which showed revenue below market expectations, although Alibaba Cloud's revenue grew by 18% year-on-year [3]

Financial Data and Key Metrics Changes - The company reported $800 million in bookings for Q1 and forecasts $5 billion in bookings for the full calendar year [11] - North America operations generated $2.2 billion in revenue during 2024, with $1.3 billion from U.S. operations and $900 million from Mexico operations [18] Business Line Data and Key Metrics Changes - The company achieved 23 new program launches in Q1, including 14 for battery electric vehicle platforms and 19 for new or conquest business [7] - Electric powered steering accounted for 36% of new business bookings, while columns accounted for 45% [11] Market Data and Key Metrics Changes - Nearly 40% of total bookings are from China OEMs, indicating alignment with growth megatrends in China [12] - The company is experiencing strong customer schedules in North America, with no significant changes related to recent tariff impacts [30] Company Strategy and Development Direction - The company is focusing on motion by wire technology, which is central to long-term growth and aligns with the shift from hydraulic to electric systems [22] - The strategy includes expanding into steer by wire and brake by wire technologies, with expectations for increased bookings in the China market [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating the dynamic tariff environment and expects above-market revenue growth of 200 to 300 basis points year over year [20] - The company is closely monitoring tariff developments and their implications on North American production volume [21] Other Important Information - The company has successfully resecured an important column business with a North American customer, which had been lost to a competitor [10] - The company is actively working to mitigate tariff costs through changing sourcing locations and negotiating recoveries with customers [20] Q&A Session Summary Question: Updates on the latest trend in the North America market - Management noted that North America volumes are performing according to expectations, with strong customer schedules in the near term [26][28] Question: Changes in customer order trends due to new tariffs - Management indicated that customer production schedules remain strong and have not changed significantly due to the new tariffs [30] Question: Clarification on USMCA tariff compliance - Management confirmed that to be USMCA compliant, 75% of content must come from North America, and compliant goods can be imported with zero tariffs [32][33]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved record bookings of $800 million and forecasts total bookings of $5 billion for the full year [12][22] - North America operations generated $2.2 billion in revenue during 2024, with $1.3 billion from U.S. operations and $900 million from Mexico operations [19] Business Line Data and Key Metrics Changes - The company launched 23 new programs in Q1 2025, including 14 for battery electric vehicle platforms and 19 for new or conquest business [8] - Electric powered steering accounted for 36% of new business bookings, while columns accounted for 45% [12] Market Data and Key Metrics Changes - Nearly 40% of total bookings are from China OEMs, indicating alignment with growth megatrends in China [12] - The company is experiencing strong demand for by-wire technology, particularly in the China market [24] Company Strategy and Development Direction - The company is focused on expanding its motion by wire technology, which includes steer by wire and brake by wire systems, to enhance precision and efficiency in EV platforms [15][23] - The strategy includes reducing fixed costs, optimizing footprint, and improving supply chain efficiency to drive margin expansion [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges such as a dynamic tariff environment and supply chain restrictions but remains optimistic about strong customer schedules and revenue growth [6][30] - The company is well-positioned to navigate tariff impacts and is actively working with customers to mitigate costs [22] Other Important Information - The company successfully resecured an important column business with a North American customer, which had been lost to a competitor [11] - The company expects to start production of rear wheel steering contracts with leading Chinese OEMs in 2026 [14] Q&A Session Summary Question: Updates on the latest trend in the North America market - Management noted that year-to-date volumes in North America are performing according to expectations, with strong customer schedules [27][30] Question: Changes in customer order trends due to new tariffs - Management indicated that customer production schedules remain strong and have not changed significantly due to the new tariffs [31] Question: Clarification on USMCA tariff compliance - Management confirmed that for USMCA compliant shipments, there is no tariff if 75% of content comes from North America; otherwise, a 25% tariff applies [33][34]

Financial Data and Key Metrics Changes - The company reported $800 million in bookings for Q1 2025 and forecasts $5 billion in bookings for the full calendar year [11] - North America operations generated $2.2 billion in revenue during 2024, with $1.3 billion from U.S. operations and $900 million from Mexico operations [17] - The company expects above-market revenue growth of 200 to 300 basis points year over year for 2025 [20] Business Line Data and Key Metrics Changes - In Q1 2025, the company achieved 23 new program launches, including 14 for battery electric vehicle platforms [7] - Electric powered steering accounted for 36% of year-to-date new business bookings, while columns accounted for 45% [11] - The company secured significant steer by wire bookings, including contracts with a global EV leader and a leading Chinese NEV OEM [21] Market Data and Key Metrics Changes - Nearly 40% of total bookings are from Chinese OEMs, indicating alignment with growth megatrends in China [12] - The company is experiencing strong customer schedules in North America, with no significant changes related to recent tariff impacts [28] Company Strategy and Development Direction - The company is focusing on motion by wire technology as a central part of its long-term growth strategy, transitioning from hydraulic to electric control systems [21] - The company aims to expand its motion by wire chassis portfolio, including steer by wire and brake by wire technologies [10][14] - The strategy includes reducing fixed costs, optimizing footprint, and improving supply chain efficiency to drive margin expansion [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as dynamic tariff environments and supply chain restrictions but expressed confidence in navigating these issues [5][20] - The company remains optimistic about the North American market, despite potential volatility due to tariffs [26][27] Other Important Information - The company launched several new programs at the Shanghai Auto Show, emphasizing its commitment to innovative technology [6] - The company is actively working to mitigate tariff costs through changing sourcing locations and negotiating recoveries with customers [19] Q&A Session Summary Question: Updates on the latest trend in the North America market - Management noted that North America volumes are performing according to expectations, with strong customer schedules in the near term [24][26] Question: Changes in customer order trends due to new tariffs - Management indicated that customer production schedules remain strong and have not changed significantly due to the new tariffs [28] Question: Clarification on USMCA tariff compliance - Management confirmed that to be USMCA compliant, 75% of content must come from North America, and compliant goods can be imported with zero tariffs [30][31]

Summary of Key Points Industry Overview - The discussion revolves around the robotics industry, specifically focusing on the application of universal joints in robotic joints such as wrists and necks, indicating a growing interest in enhancing robotic mobility and flexibility [1][2]. Core Companies Mentioned - **Wanxiang Qianchao**: The company has developed precision bearings and lead screws, considering the application of universal joints in necks, wrists, and ankles to achieve multidimensional flexible movement, marking a new change in robotic hardware [3]. - **Zhengqiang Co., Ltd.**: Engaged in the production of automotive cross-axis universal joint assemblies and forks, with a strong independent R&D capability in the cross-axis universal joint assembly segment [3]. - **Guansheng Co., Ltd.**: Focused on automotive chassis system components for over 30 years, offering products including constant velocity joints, drive shaft assemblies, wheel hub bearing units, steering and suspension components, and shock absorber series [3]. - **Nexteer Automotive**: A global leader in steering and power transmission supply, primarily producing steering systems, power transmission systems, drive shaft universal joints, and steer-by-wire products [3]. Technological Insights - Universal joints are likened to joint connectors that transmit power from engines or motors to other robotic hardware, enhancing the multi-angle rotation of humanoid robots' heads and dexterous hands, thereby increasing the flexibility of robotic movement and expanding future application possibilities [2]. Market Trends - There is a noted lack of complete market recognition regarding the potential applications of universal joints in robotics, suggesting an emerging opportunity for companies involved in this technology [1]. Additional Considerations - The advancements in universal joint technology could lead to significant improvements in robotic design and functionality, potentially opening new markets and applications in various sectors [2][3].

Group 1 - The core viewpoint of the article highlights that Nexperia is a trusted partner in the safety-critical motion control sector, both in China and globally, as stated by Robin Milavec, the company's President, CTO, and Chief Strategy Officer [2] - Nexperia is recognized as a leading company in motion control technology, providing innovative products and solutions for challenges in electrification, advanced driver-assistance systems (ADAS), autonomous driving, and shared mobility [2] - During the 21st Shanghai International Auto Show, Nexperia showcased its latest innovations in motion control, allowing visitors to experience next-generation breakthroughs in safety, comfort, and performance through simulated driving [2] Group 2 - The company collaborates closely with leading automotive manufacturers in China and globally, helping them to quickly respond to market trends and changes with high-quality, value-driven technologies [3] - The choice of Nexperia by automotive manufacturers is attributed to its foresight, speed, and value, which are crucial for success in a highly competitive and rapidly changing market [3]

Group 1 - The core viewpoint of the article highlights the significant growth of E Fund's Hong Kong Stock Connect Quality Growth Mixed Fund C (017974), with a net asset increase of 230.89% to 287 million yuan as of March 31, 2025 [1] - The fund manager, Li Jianfeng, has an extensive background in investment banking and asset management, having worked with prestigious firms such as Goldman Sachs and UBS before joining E Fund in 2022 [1] - The fund's recent performance shows a 15.06% return over the past three months and a 29.17% return over the past year, with a cumulative return of 9.46% since inception [2] Group 2 - Recent changes in fund share scale indicate no subscriptions and minimal redemptions, with total shares remaining at 0.02 billion as of March 31, 2025, reflecting a net asset change rate of -2.54% [2] - The top ten stock holdings of the fund include Tencent Holdings, Pop Mart, Alibaba-W, China Mobile, and others, accounting for a total of 55.59% of the portfolio [2] - E Fund Management Co., Ltd. was established in April 2001, located in Zhuhai, with a registered capital of 132.442 million yuan [2]

Group 1: Hong Kong Stock Market Strategy - The Hong Kong stock market is expected to consolidate in the short term, with a "barbell" investment strategy recommended for balanced allocation[1] - After recent corrections, the Hong Kong stock market presents high investment value, supported by rising expectations of domestic counter-cyclical policies[1] - High-dividend stocks are likely to provide a certainty premium and may outperform in the current market environment[1] Group 2: Impact of Trump's Tariff Policies - Trump's tariff policies are expected to increase the tariff rate on China to 125%, potentially leading to a decline in corporate profits and reduced willingness to export to the U.S.[1] - The anticipated impact of tariffs could account for approximately 10% of China's total exports, affecting GDP by about 2%[1] - The market is likely to experience sideways movement due to uncertainties surrounding the implementation of tariffs and their economic implications[1] Group 3: U.S. Financial Market Volatility - The U.S. financial markets have experienced significant volatility, raising doubts about the effectiveness of fundamental and technical analysis[2] - A notable increase in U.S. Treasury yields, coupled with a decline in the dollar index, indicates a "trust crisis" in the dollar[2] - The Trump administration's tariff policies may lead to a reliance on achieving trade agreements to restore confidence in the U.S. economy[2] Group 4: Dollar Index and Credit Weakening - The dollar index has fallen significantly, reaching a two-year low of 99.01, primarily due to uncertainties surrounding Trump's tariff policies[3] - The weakening of the dollar's credit is accelerating, driven by a decline in U.S. economic advantages and an increase in de-dollarization trends[3] - The forecast for the dollar index has been adjusted to a range of 98-104, indicating a potential long-term weakening trend[3]