Core Viewpoint - The report maintains a "Buy" rating for Nexperia, anticipating a strong performance in Q4 2025 with the potential acquisition of a steering control order, supported by robust production in the Asia-Pacific region [1] Group 1: Investment Outlook - The "Buy" rating is upheld, with EPS forecasts for 2025-2027 set at $0.06, $0.08, and $0.10 respectively, based on comparable companies [1] - The target price is raised to HKD 9.45, using an exchange rate of 1 USD = 7.7 HKD, reflecting a 20x PE for 2025 [1] Group 2: Regional Performance - The Asia-Pacific region shows strong momentum, with multiple R-EPS models entering mass production in Q3 2025, including models from Li Auto and Chery [1] - The order contribution from the Asia-Pacific region is projected to account for 49% of total orders in the first three quarters of 2025, with an estimated total order value of $5 billion for the year [1] Group 3: Product Innovation - Nexperia is expected to secure another steering control order in Q4 2025, previously having received a contract from a global electric vehicle leader, supporting L4 autonomous driving and mobility as a service [1] - The introduction of an innovative direct-drive steering feel simulator enhances steering feedback and is designed for compact, lightweight applications, benefiting both consumers and manufacturers [1]

Core Viewpoint - The stock of Nexperia (01316) has increased by nearly 4%, currently trading at HKD 7.09 with a transaction volume of HKD 11.5146 million, indicating positive market sentiment towards the company [1] Group 1: Orders and Revenue - Cathay Securities has reported that by Q3 2025, models such as Li Auto i6, i8, Zeekr 9X, and Chery Jetour G700 are expected to enter mass production, with the Asia-Pacific region contributing 49% of order value in the first three quarters of 2025, and an estimated total of USD 5 billion in orders for the year [1] - Nexperia secured new orders worth USD 1.5 billion in the first half of the year, including domestic and overseas business from Chinese automakers and dual small gear EPS and rear-wheel steering orders from European automakers, maintaining its annual order target of USD 5 billion [1] Group 2: Product Innovations - The company has introduced the Motion IQ software suite, which provides advanced vehicle dynamics features such as silent steering, hands-off detection, and road surface detection, serving as both a fault prediction software and a model-based software development tool to accelerate product launch and reduce costs [1] - An innovative direct-drive steering feel simulator has been launched, offering improved steering feel and suitable for compact, lightweight designs, supporting both low and high placement designs, benefiting consumers and manufacturers alike [1] Group 3: Future Prospects - The company anticipates more projects related to steer-by-wire technology in the second half of the year, following the previous acquisition of a steer-by-wire order from a global electric vehicle leader, which supports L4 level autonomous driving and mobility as a service [1]

Core Viewpoint - The stock of Nextracker (耐世特) has seen an increase of nearly 4%, currently trading at 7.09 HKD with a transaction volume of 11.5146 million HKD, indicating positive market sentiment towards the company [1] Group 1: Orders and Revenue - According to Guotai Junan, several models including Li Auto i6, i8, Zeekr 9X, and Chery Jetour G700 are expected to enter mass production by Q3 2025, with the Asia-Pacific region contributing 49% of order value in the first three quarters of 2025, and an estimated total of 5 billion USD in orders for the year [1] - In the first half of the year, Nextracker secured new orders worth 1.5 billion USD, including domestic and overseas business from Chinese automakers and orders for dual small gear EPS and rear-wheel steering from European automakers, maintaining its annual order target of 5 billion USD [1] Group 2: Product Innovations - Nextracker has introduced the Motion IQ software suite in August, which provides advanced vehicle dynamics features such as silent steering, hands-off detection, and road surface detection, serving as both a fault prediction tool and a model-based software development tool to accelerate product launch and reduce costs [1] - The company has also developed an innovative direct-drive steering feel simulator, which enhances steering feel and is suitable for compact, lightweight designs, supporting both low and high placement designs, benefiting both consumers and manufacturers [1] Group 3: Future Prospects - The company is expected to secure more projects related to steer-by-wire technology in the second half of the year, following its previous success in obtaining a steer-by-wire order from a global electric vehicle leader, which supports L4 level autonomous driving and mobility as a service [1]

Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Insights - The company is expected to secure another steering-by-wire (SBW) contract by Q4 2025, indicating a stable operational outlook [2][8]. - The Asia-Pacific region is a strong growth driver, with multiple R-EPS (Rack-EPS) entering mass production in Q3 2025, contributing to an estimated $5 billion in orders for the year [8]. - The company has already received a steering-by-wire contract from a global leader in electric vehicles, supporting L4 autonomous driving and mobility as a service [8]. - An innovative direct-drive steering feel simulator has been launched, enhancing steering feel simulation and supporting compact, lightweight designs [8]. Financial Summary - Revenue projections are as follows: - 2023: $4.207 billion - 2024: $4.276 billion (up 2%) - 2025: $4.600 billion (up 8%) - 2026: $4.893 billion (up 6%) - 2027: $5.330 billion (up 9%) [7][8]. - Net profit is expected to grow significantly from $37 million in 2023 to $250 million by 2027, reflecting a 147% increase in 2025 [7][8]. - The company’s PE ratio is projected to decrease from 63.33 in 2023 to 8.67 by 2027, indicating improved valuation metrics over time [7][8]. Valuation and Target Price - The target price has been raised to HKD 9.45 for 2025, based on a 20x PE ratio [8]. - The report suggests that the company’s EPS forecasts for 2025-2027 are $0.06, $0.08, and $0.10 respectively [8].

Core Viewpoint - Cathay Pacific Haitong maintains an "Overweight" rating for Nextracker (01316), citing stable operational performance and expected growth in the electric vehicle sector due to multiple R-EPS entering mass production in the Asia-Pacific region in Q3 2025 [1] Group 1: Financial Projections - EPS forecasts for Nextracker are maintained at $0.06, $0.08, and $0.10 for the years 2025-2027 [1] - The target price is raised to HKD 9.45, based on a 20x PE ratio for 2025, with the exchange rate considered at 1 USD = 7.7 HKD [1] Group 2: Market Developments - R-EPS for models such as Ideal i6, i8, Zeekr 9X, and Chery Jetour G700 are expected to enter mass production in Q3 2025 [1] - The Asia-Pacific region is projected to contribute 49% of order value in the first three quarters of 2025, with an estimated total order value of $5 billion for the year [1] Group 3: Product Innovations - The company has received a key order for steer-by-wire technology from a global leader in electric vehicles, supporting L4 autonomous driving and mobility-as-a-service [1] - An innovative direct-drive steering feel simulator has been launched, enhancing steering feel simulation and accommodating compact, lightweight designs [1]

Core Viewpoint - Cathay Pacific Haotong maintains an "overweight" rating for Nextracker (01316), citing stable operational conditions and positive growth prospects in the Asia-Pacific region [1] Group 1: Financial Projections - EPS forecasts for Nextracker are maintained at $0.06, $0.08, and $0.10 for the years 2025-2027 [1] - The target price is raised to HKD 9.45, based on a 20x PE ratio for 2025 [1] Group 2: Market Developments - Multiple R-EPS models, including Ideal i6, i8, Zeekr 9X, and Chery Jetour G700, are set to enter mass production in Q3 2025 [1] - The Asia-Pacific region is expected to contribute 49% of order value in the first three quarters of 2025, with an annual order forecast of $5 billion [1] Group 3: Product Innovations - Nextracker is anticipated to secure additional line control steering points in Q4 2025, supporting L4 level autonomous driving and mobility services [1] - The introduction of a direct-drive steering feel simulator aims to enhance steering feedback while accommodating compact and lightweight designs [1]