Skip to content
Alpha Edge Investing

Alpha Edge Investing

"Investors operate with limited funds and limited intelligence, they don’t need to know everything. As long as they understand better than others, they have an edge.” – George Soros

  • Home
  • Earnings Updates/ Corporate Actions
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trust/ ETF
  • News
  • My Opinions/ Views
  • Others
  • About Me
  • Contact
  • Disclaimer
  • Community and Support Forums
  • Toggle search form

KGI: Nexteer Automotive Group Ltd (1316 HK) – Riding on the auto sector recovery 

Posted on July 20, 2022July 20, 2022 By alanyeo No Comments on KGI: Nexteer Automotive Group Ltd (1316 HK) – Riding on the auto sector recovery 
  • RE-ITERATE Buy Entry – 5.50 Target – 6.35 Stop Loss – 5.10
  • Nexteer Automotive Group Limited is an investment holding company. The Company through its subsidiaries are primarily engaged in the design and manufacture of steering and driveline systems, advanced driver assistance systems (ADAS) and automated driving (AD) and components for automobile manufacturers and other automotive-related companies. Its operations are in the United States of America (USA), Mexico, Poland and the People’s Republic of China (China). The principal markets for the Company’s products are North America, Europe, South America, China and India. The Company has approximately 27 manufacturing plants, one global technical center, over two regional technical centers, one software service center and approximately 13 customer service centers. Its subsidiaries include Nexteer US Holding I LLC, Rhodes I LLC, Steering Solutions IP Holding Corporation, Chongqing Nexteer Steering Systems Co., Ltd., CNXMotion, LLC and Dongfeng Nexteer Steering Systems (Wuhan) Co., Ltd.
  • Auto sales recovered in June. Automobile sales in China expanded 23.8% YoY to 2.5 mn units in June of 2022, boosted by government incentives to support the industry and a recovery in production, particularly in coronavirus lockdown-hit Shanghai, according to the China Association of Automobile Manufacturers. The auto part manufacturer sector also followed the recovery, but we still think the upside potential is bigger. 
  • New orders to uphold the growth. In 1Q22, the total value of new order signed amounted to US$2.73bn, four times of the total value signed in 1Q21. With the recovery in the auto markets in Europe and Asia Pacific, the oder book is expected to grow healthily in FY22.
  • Updated market consensus of the EPS growth in FY22/23 is 19.4%/52.5% YoY respectively, which translates to 12.3x/8.1x forward PE. The current PER is 15.6x. Bloomberg consensus average 12-month target price is HK$6.67.

(Source: Bloomberg)

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
Research - Equities Tags:Nexteer Automotive

Post navigation

Previous Post: KGI: Sinopharm Group Co., Ltd. (1099 HK) – A defensive counter amidst a market downturn
Next Post: UOBKH: Singapore Exchange – Upgrade to Buy Target Price $11.09

Related Posts

DBS: China Auto Sector Research - Equities
UOBKH: Automobile – China (Overweight) Research - Equities
DBS: China Auto Sector Research - Equities
DBS: Nexteer Automotive Group – Buy Target Price HK$8.20 Research - Equities
DBS: China Autos Research - Equities
DBS: China Auto Sector – Recovering from the doldrums Research - Equities
DBS: Nexteer Automotive Group Ltd – Buy Target Price HK$7.30 Research - Equities
DBS: Nexteer Automotive Group Ltd – Buy TP HK$7.30 (Previous HK$8.00) Research - Equities
UOBKH: Automobile – China (Overweight) Research - Equities
DBS: China Auto – BYD Research - Equities
KGI: Nexteer Automotive Group Ltd (1316 HK): Riding on the auto sector recovery Research - Equities
KGI: Nexteer Automotive Group Ltd (1316 HK) – Riding on the auto sector recovery Research - Equities

Leave a Reply

You must be logged in to post a comment.

Login

Log In
Register Lost Password
Get new posts by email
Chat on WhatsApp
  • Earnings Updates/ Corporate Actions
  • My Opinions/ Views
  • News
  • Others
  • Research – Equities
  • Research – Fixed Income/ Bonds
  • Research – Unit Trusts/ ETF

Copyright © 2023 Alpha Edge Investing.

Powered by PressBook Grid Blogs theme