Nexteer (01316) fell more than 6%, down 6.58% at press time to HK$3.69, with a turnover of HK$17.41 million.
The Zhitong Finance App learned that Nexteer (01316) fell by more than 6%, down 6.58% at press time, to HK$3.69, with a turnover of HK$17.41 million.
According to the news, after the Spring Festival holiday, car companies set off a “wave of price cuts.” According to statistics, at present, 14 car companies have officially announced price cuts. Analysts said that after the price war began, the demand for cost reduction from car companies was more urgent than ever before. Under limited internal cost control, the pressure to cut costs spread to the supplier system. Shanghai Securities, on the other hand, said that if parts manufacturers adopt aggressive market competition strategies such as price wars in market competition, it will have an impact on the profitability of parts manufacturers.
Morgan Stanley released a research report stating that it maintained the company's “gain” rating and lowered its profit forecast for the 2024/25 fiscal year by 13%/11%, mainly due to fierce price competition among original equipment manufacturers (OEMs), which continuously increased profit pressure. Earnings per share are expected to be US$0.06 and US$0.08 respectively in 2024 and 2025, and the target price will be reduced by 10% to HK$5.6 from HK$6.2. The basic assumption is that in addition to easing the shortage of chip supply, automobile demand from China and the US supports the company's revenue growth, and gross margin has improved.