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]

Core Viewpoint - The stock of Nexperia (01316) has risen nearly 6%, reaching a new high of 7.64 HKD since February 2022, driven by favorable government policies and strong order growth in the automotive sector [1] Group 1: Company Performance - Nexperia's stock price increased by 5.83% to 7.63 HKD with a trading volume of 145 million HKD [1] - The company secured new orders worth 1.5 billion USD in the first half of the year, including domestic and overseas business from Chinese automakers and orders for dual small gear EPS and rear-wheel steering from European automakers [1] - Nexperia maintains its annual order target of 5 billion USD, indicating strong confidence in future performance [1] Group 2: Industry Trends - The Ministry of Industry and Information Technology, along with eight other departments, released the "Automotive Industry Stabilization and Growth Work Plan (2025-2026)", promoting the industrial application of intelligent connected technology [1] - The plan includes conditional approval for the production of L3-level vehicles and aims to enhance road traffic safety and improve relevant laws and regulations [1] - As the penetration rate of L3-level and above autonomous driving increases, the penetration rate of steer-by-wire systems is expected to rise correspondingly, with Nexperia currently holding over 50% of the global market share in this technology [1] Group 3: Competitive Position - Nexperia is one of the few companies, alongside Bosch and ZF, that has achieved mass production of steer-by-wire technology, positioning itself as a leader in this competitive landscape [1] - The company is actively advancing its steer-by-wire chassis development, including steer-by-wire, rear-wheel steering, electronic mechanical brake control, and Motion IQ software suite, aligning with industry development trends to enhance competitiveness [1] - Analysts expect Nexperia to secure more steer-by-wire related projects in the second half of the year, further solidifying its market position [1]

Core Viewpoint - The stock of Nexperia (01316) has risen nearly 6%, reaching a new high of 7.64 HKD since February 2022, driven by favorable government policies and strong order growth in the automotive sector [1] Group 1: Government Policy Impact - The Ministry of Industry and Information Technology and eight other departments have issued the "Automotive Industry Stabilization Growth Work Plan (2025-2026)", promoting the industrial application of intelligent connected technology [1] - The plan includes pilot approvals for L3-level vehicle production and improvements in traffic safety and insurance regulations [1] Group 2: Market Position and Competitiveness - Nexperia holds over 50% of the global market share in steer-by-wire systems, with only a few competitors like Bosch and ZF achieving mass production [1] - The company is recognized for its leading steer-by-wire technology and is well-positioned to capitalize on industry trends [1] Group 3: Order Growth and Future Prospects - In the first half of the year, Nexperia secured new orders worth 1.5 billion USD, including contracts from Chinese and European automakers [1] - The company maintains its annual order target of 5 billion USD and is actively advancing steer-by-wire chassis development, enhancing its competitiveness [1] - Analysts expect Nexperia to secure more steer-by-wire related projects in the second half of the year [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price raised to HKD 8.0, indicating a potential upside of 33% from the current price of HKD 6.4 [6]. Core Insights - The company achieved a revenue of USD 2.242 billion in the first half of 2025, representing a year-on-year growth of 6.8%, and a net profit of USD 63.48 million, which is a threefold increase [1][2]. - The report projects revenue growth for 2025-2027 to reach USD 4.59 billion, USD 4.98 billion, and USD 5.48 billion, with respective growth rates of 7.3%, 8.6%, and 10.0%. Net profit is expected to increase to USD 120 million, USD 148 million, and USD 182 million, with growth rates of 93.8%, 23.4%, and 23.0% [1][3]. Revenue and Profitability - The company's gross margin improved to 11.5%, up by 1.5 percentage points year-on-year, while the net margin reached 2.8%, an increase of 2.1 percentage points [2]. - Revenue by region for the first half of 2025 was USD 1.14 billion in North America, USD 690 million in Asia-Pacific, and USD 400 million in EMEASA, with growth rates of 1.7%, 15.5%, and 9.4% respectively [2]. Business Development - The company secured new orders totaling USD 1.5 billion, including contracts from Chinese and European automotive manufacturers, and aims to maintain an annual order target of USD 5 billion [3]. - The launch of the Motion IQ software suite is expected to enhance product development speed and reduce costs, aligning with industry trends [3]. Financial Forecast - The financial projections indicate a sales revenue of USD 4.207 billion for FY2023, increasing to USD 5.479 billion by FY2027, with a compound annual growth rate of approximately 10% [4]. - The net profit is forecasted to recover from a decline of 37% in FY2023 to a growth of 68% in FY2024, reaching USD 182 million by FY2027 [4].

Core Viewpoint - The company reported a strong performance in 1H25, with revenue and net profit growth exceeding expectations, driven by new product launches and operational efficiency improvements [1][2]. Revenue Performance - 1H25 revenue reached $2.242 billion, a year-on-year increase of 6.8% - Net profit for 1H25 was $63.48 million, representing a threefold increase compared to the previous year - The net profit margin reached 2.8%, the highest since 2023 [1] Regional Performance - Revenue by region in 1H25: North America $1.14 billion (+1.7% YoY), Asia-Pacific $690 million (+15.5% YoY), EMEASA $400 million (+9.4% YoY) - Notable growth in China and EMEASA regions, with new projects like Xiaomi YU7 and various EV models contributing to revenue [1] Business Segment Performance - Revenue from different business segments in 1H25: EPS $1.53 billion (+8.6% YoY), CIS $230 million (+2.9% YoY), HPS $90 million (+1.7% YoY), DL $400 million (+3.8% YoY) [1] Profitability Metrics - 1H25 gross margin was 11.5%, an increase of 1.5 percentage points YoY and 0.6 percentage points QoQ - EBITDA margins by region: North America 7.6% (-0.2 ppt YoY), Asia-Pacific 16.9% (-0.8 ppt YoY), EMEASA 8.8% (+6.7 ppt YoY) [2] Cost Management - R&D, sales, and management expenses for 1H25 were $75.39 million (-14.9% YoY), $10.70 million (-0.8% YoY), and $81.47 million (+13.8% YoY) respectively - Overall expense ratios showed a stable declining trend, with R&D expenses decreasing due to reduced impairment costs from canceled projects [2] Order Acquisition and Future Outlook - The company secured $1.5 billion in new orders in 1H25, maintaining a full-year target of $5 billion - New projects include advanced steering systems for electric vehicles, indicating a strong pipeline for future growth [3] Profitability Improvement Measures - The company is addressing tariff changes and collaborating with suppliers and clients to manage costs - Recent introduction of the Motion IQ software suite aims to enhance client efficiency and reduce costs [3] Valuation and Price Target - The company maintains its net profit forecasts for 2025 and 2026 - Current stock price corresponds to a P/E ratio of 12.6x for 2025 and 9.9x for 2026, with a target price increase of 17% to HKD 8.4, indicating a 21% upside potential [3]

Core Viewpoint - The report from CICC maintains the net profit forecast for Denso (01316) for 2025 and 2026, with the current stock price corresponding to 12.6x and 9.9x P/E for 25E and 26E respectively, and raises the target price by 17% to HKD 8.4, indicating a 21% upside potential from the current price [1] Group 1: Financial Performance - In 1H25, the company reported revenue of USD 2.242 billion, a year-on-year increase of 6.8%, and a net profit attributable to shareholders of USD 63.48 million, which represents a threefold increase year-on-year, with a net profit margin of 2.8%, the highest since 2023 [1] - The gross margin in 1H25 was 11.5%, up by 1.5 percentage points year-on-year and 0.6 percentage points quarter-on-quarter, driven by revenue growth and improved operational efficiency [2] - The effective tax rate for 1H25 was 28%, a decrease of 15.6% year-on-year and 4 percentage points quarter-on-quarter [2] Group 2: Regional and Business Performance - Revenue growth outpaced the light vehicle sales growth across various regions, with significant projects launched, including models from Xiaomi, North American EV leaders, XPeng, and BYD [1] - Revenue by region in 1H25 was USD 1.14 billion for North America, USD 690 million for Asia-Pacific, and USD 400 million for EMEASA, with year-on-year growth rates of +1.7%, +15.5%, and +9.4% respectively [1] - Revenue from different business segments in 1H25 was USD 1.53 billion for EPS, USD 230 million for CIS, USD 90 million for HPS, and USD 400 million for DL, with year-on-year growth rates of +8.6%, +2.9%, +1.7%, and +3.8% respectively [1] Group 3: Order Acquisition and Profitability Measures - In 1H25, the company secured new orders worth USD 1.5 billion, including domestic and overseas business from Chinese automakers and orders for dual small gear EPS and rear-wheel steering from European automakers, maintaining an annual order target of USD 5 billion [3] - The company has received project designations for L4 autonomous driving models from global EV leaders and line control projects from leading Chinese new energy OEMs, indicating a potential lead in mass production speed for line control models [3] - The introduction of the new Motion IQ software suite aims to enhance customer efficiency and reduce costs, while the company collaborates with suppliers and customers to manage tariff changes and optimize production capacity [3]

Core Viewpoint - The company reported strong performance in 1H25, with total revenue and net profit significantly exceeding expectations, primarily driven by growth in the Asia-Pacific region [3][4]. Group 1: Financial Performance - Total revenue for 1H25 increased by 6.8% year-on-year to $2.24 billion, accounting for 51% of the full-year revenue forecast [3]. - Gross margin improved by 1.5 percentage points to 11.5%, while EBITDA rose by 16.8% to $230 million [3]. - Net profit surged by 304.5% to $63 million, representing 57% of the annual net profit forecast [3]. Group 2: Regional Business Growth - The Asia-Pacific region's revenue grew by 15.5% year-on-year to $690 million, increasing its total revenue share by 3 percentage points to 31% [4]. - EMEASA region revenue also saw a 9.4% increase to $400 million, while North America’s revenue share decreased by 2 percentage points to 51% [4]. - EBITDA margin in the Asia-Pacific region decreased by 0.7 percentage points to 16.9%, whereas EMEASA's EBITDA margin increased by 6.8 percentage points to 8.8% [4]. Group 3: New Orders and Business Expansion - The company secured $1.5 billion in new orders in 1H25, with 47% from Asia-Pacific, 30% from EMEASA, and 23% from North America [4]. - The company anticipates adding $5 billion in new orders for the full year 2025, with significant projects in North America and Europe [5]. - The company is leveraging its technological advantages to expand into new business areas, including steer-by-wire systems and software solutions for smart vehicles [5].