Guoyuan International released a research report forecasting NEXTEER's (01316) revenue for 2026-2028 to be $4.896 billion (+6.8%), $5.253 billion (+7.3%), and $5.647 billion (+7.5%), respectively. Net profit attributable to shareholders is projected at $155 million (+52%), $189 million (+21.9%), and $228 million (+20.5%) for the same period. Steer-by-Wire and chassis-by-wire represent key trends in the automotive industry, where NEXTEER holds a leading position. The certainty of the company's continued revenue and profit growth is relatively high. Compared to industry valuations, calculating the company's valuation based on a 2026 P/E ratio of 16.8x is reasonable, corresponding to a target price of HK$8.12 per share, representing a potential upside of 57.6% from the current price, warranting a "Buy" rating.

Key points from the report are as follows:

In Q1 2026, the company successfully commenced production of its Steer-by-Wire project, achieving breakthroughs in both new products and new clients. Its first-ever Steer-by-Wire product officially entered production in the quarter. It is equipped on the Li L9 Livis, the highest-specification mass-produced model to date from the Li Auto brand, providing a complete Steer-by-Wire solution including the upper actuator behind the steering wheel and the lower chassis actuator. This model was officially launched in mid-May. The company also successfully commenced production for the first time of a REPS product for the Volkswagen 08 model, part of Volkswagen China's exclusive electric platform, achieving a substantive breakthrough in EPS business within the Volkswagen system.

In Q1 2026, the company secured $1.6 billion in new orders, doubling compared to the $800 million in the same period of 2025. The full-year order target has been raised to $6.0 billion, higher than the $4.9 billion actually achieved in 2025. Regarding regional order structure: over half of the Q1 orders came from the North American market, primarily lifecycle extension orders for existing internal combustion engine/hybrid platform business, further consolidating the company's core position in that market. In the Asia-Pacific region, the company achieved strong order growth for REPS, rear-wheel steering, CEPS, and column business with a new Chinese OEM, and achieved a breakthrough in CEPS business with an existing Chinese OEM. It is anticipated that more Steer-by-Wire orders will be added within the year, along with securing the first EMB project.