Morgan Stanley: Lower NEXTEER (01316) target price to HK$6.1, lowers profit forecast for this year and next by 5-10%
The company expects Neist's revenue to achieve a year-on-year growth of 7% in 2026. Whether it can smoothly transfer the rising costs and obtain OEM compensation will be a key variable in the gross profit margin for 2026.
Morgan Stanley released a research report stating that it has lowered its profit forecast for NEXTEER (01316) for the years 2026-2027 by 5-10% to reflect weaker-than-expected automobile production in China and a significant increase in material costs putting more pressure on gross margins than expected. The target price has been adjusted from 6.3 Hong Kong dollars to 6.1 Hong Kong dollars with a rating of "in sync with the overall market". The bank expects NEXTEER's revenue to increase by 7% in 2026. The key variable for the gross margin in 2026 will be whether the company can successfully pass on the cost increases and receive compensation from OEMs.
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SINOPEC CORP (00386) spent 5.184 million yuan on July 24 to repurchase 1 million A shares.
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