Core Insights - The Chinese automotive industry is transitioning from "quantity leadership" to "quality breakthroughs," with chassis technology becoming a key battleground for competition [1][3] - The future of Chinese electric vehicle chassis will focus on four main directions: high adaptability, high safety, high controllability, and high comfort [1][6] Industry Overview - China has been the world's largest automotive producer and seller for 15 consecutive years, but it still lags behind foreign giants in profitability and technological value [3] - In 2024, Toyota's net profit is projected to be three times that of the combined profits of China's seven most profitable car companies, highlighting the challenges faced by the Chinese automotive industry [3] Technological Challenges - Core components of traditional vehicles, particularly engines, transmissions, and chassis systems, have long been dominated by international giants like Bosch and ZF, creating high technical barriers [3][4] - The traditional chassis design is incompatible with the structure and control logic of electric vehicles, necessitating a complete redesign and integration [4] Technological Innovations - "Drive-by-wire" technology is emerging as a core focus for chassis evolution, enhancing vehicle response speed and control precision while providing reliable execution for intelligent driving systems [4][5] - The chassis accounts for over 70% of the total vehicle cost, making it a critical factor for product competitiveness and profit margins [4] Domestic Progress - Chinese companies have made significant advancements in niche areas such as intelligent suspension and steer-by-wire systems, with companies like Baolong Technology and Konghui Technology gaining market share [5] - NIO's ET9 has become the first mass-produced vehicle in China to feature a steer-by-wire system, indicating China's capability in high-end chassis technology [5] Future Outlook - The electronic mechanical brake (EMB) system is expected to achieve mass production by 2026, presenting an opportunity for China to potentially lead in this area [6] - The Chinese government has prioritized "new chassis architecture" as a key technology, promoting domestic innovation in chassis technology [6] - The future development of Chinese electric vehicle chassis will aim for a new architecture characterized by flexibility, sensitivity, stability, and adaptability, with a goal to transition from a "quantity powerhouse" to a "technology powerhouse" in the automotive sector [6]

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 - NEXTEER (1316.HK) experienced a significant increase of approximately 7%, reaching HKD 7.27, with a total market capitalization of HKD 18.25 billion. The latest report from Cathay Securities indicates that multiple R-EPS in the Asia-Pacific region have entered mass production in Q3, and the company is expected to secure additional steering-by-wire contracts in Q4, suggesting stable operational conditions. The target price has been raised to HKD 9.45, maintaining a "Buy" rating [1] Summary by Relevant Sections - **Market Performance** - NEXTEER shares rose about 7% to HKD 7.27, with a market cap of HKD 18.25 billion [1] - **Analyst Insights** - Cathay Securities' latest report highlights the entry of multiple R-EPS into mass production in the Asia-Pacific region during Q3, with expectations for further steering-by-wire contracts in Q4 [1] - The firm assesses the company's operational conditions as stable and has raised the target price to HKD 9.45 while maintaining a "Buy" rating [1] - **Order Contribution** - For the first three quarters of 2025, the Asia-Pacific region is expected to contribute 49% of the company's order amount, with an annual forecast of USD 5 billion in orders [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 - 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]

Core Viewpoint - Zhejiang Shibao (002703) reported a significant increase in revenue and net profit for the first three quarters of 2025, reflecting strong business performance in the automotive steering system sector [1] Financial Performance - The company achieved an operating revenue of 2.462 billion yuan, representing a year-on-year increase of 35.44% [1] - Net profit attributable to shareholders reached 150 million yuan, marking a year-on-year increase of 33.66% [1] - Basic earnings per share were reported at 0.1819 yuan [1] Business Operations - Zhejiang Shibao's primary business involves first-tier supply of automotive steering systems, serving leading domestic automakers and mainstream new energy vehicle manufacturers [1] - The company is focusing its R&D investments on electrification and intelligent steering technologies [1] - The company has secured several mainstream customers for its steer-by-wire and rear-wheel steering technologies, which have not yet entered mass production [1] - Zhejiang Shibao is a supplier of steering intermediate shafts for Xiaomi Automotive [1]

Core Viewpoint - Zhejiang Shibao's stock rose over 5% following the release of its Q3 2025 performance report, indicating positive market reception to its financial results and growth prospects [1] Financial Performance - The company reported a revenue of 2.462 billion yuan, representing a year-on-year increase of 35.44% [1] - Net profit attributable to shareholders reached 150 million yuan, marking a year-on-year growth of 33.66% [1] - Basic earnings per share were reported at 0.1819 yuan [1] Business Operations - Zhejiang Shibao primarily operates in the automotive steering system sector, serving leading domestic automakers and mainstream new energy vehicle manufacturers [1] - The company's current R&D investments are focused on electrification and intelligent steering technologies [1] - The company has secured several mainstream customers for its steer-by-wire and rear-wheel steering technologies, which have not yet entered mass production [1] - Zhejiang Shibao is a supplier of steering intermediate shafts for Xiaomi's automotive division [1]

Core Viewpoint - Zhejiang Shibao (002703) has developed a customized line control steering system adaptable for various types of intelligent and autonomous vehicles, and has secured mass production projects with major automotive manufacturers [1] Group 1 - The company's line control steering system is a customized product [1] - The collaboration approach for the product development is flexible [1] - The product is suitable for all types of intelligent and autonomous driving vehicles [1] - The company has obtained mass production project designations from mainstream automotive manufacturers [1]

Group 1 - The core point of the article is that Suzhou Coordinate System Intelligent Technology Co., Ltd. has completed equity financing with Meituan as a new investor [1] - Coordinate System Intelligent Technology was established in 2023 and focuses on the development of core technologies for intelligent automotive drive-by-wire chassis, providing systematic solutions such as pure electromechanical drive-by-wire (EMB) and steer-by-wire systems [1] - According to Zhitong Finance's investment data, the probability of further financing in the next two years, based on a forecast date of September 2025, is 77.89% [1]