UBS released a research report stating that NEXTEER (01316) management disclosed at the Asia Investment Conference 2026 that two Steer-by-Wire (SbW) projects have been initiated so far this year. Management anticipates securing more SbW and Electronic Mechanical Brake (EMB) orders in 2026, with a Rear-Wheel Steering (RWS) project scheduled to commence production in the second half of this year. The firm maintains a 'Buy' rating on NEXTEER but has lowered its target price from HK$8.60 to HK$7.60.

Management expects stable year-on-year revenue growth for fiscal year 2026 but notes that rising commodity prices may pressure profit growth, particularly in the China business. The company is intensifying efforts in cost and capacity optimization to enhance profitability. In the first quarter of this year, NEXTEER secured $1.6 billion in new orders, further expanded its REPS business with North American customers, and maintained strong order momentum for core products in China.

NEXTEER's SbW orders have begun production for models such as the Li Auto L9 Livis and Tesla Cybercab. Management has observed increasing willingness among automakers to adopt SbW technology, which has started penetrating vehicle models priced around RMB 300,000. They anticipate SbW's penetration rate in China could exceed 20% by 2030. UBS believes the development of SbW and NEXTEER's potential to secure further SbW orders could serve as catalysts for the stock price.