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Maker of electric power-steering and driveline systems for global automakers, spun off from GM's Saginaw Steering.
Maker of electric power-steering and driveline systems for global automakers, spun off from GM's Saginaw Steering.
Takes orders from carmakers years ahead of production and then supplies steering systems for the life of each vehicle programme, so revenue follows vehicle output, and General Motors is still its largest customer. Chinese-owned Pacific Century Motors bought it from GM in 2010, and it listed in Hong Kong in 2013.
Moat: narrow (switching costs, customer qualification, IP / patents). Deep OEM qualification and steering IP built over decades as GM's former in-house steering unit.
Headquarters: Auburn Hills, Michigan, US · Employees: 12,500
Size Nexteer Automotive (1316.HK) is a Hong Kong Consumer Discretionary company (Auto Parts: OEM) with a market value of $1.40B, the 506th largest of 891 Hong Kong companies the cockpit tracks. Shares closed at HK$4.38 on 6 Nov 2026.
Performance Over six months the shares fell 13.7%, against -24.9% for the median peer and -13.4% for the Hong Kong market (cap-weighted) — 6th highest of 21 in its peer set.
Growth Revenue grew 6.0% over the last twelve months (peer median +12.3%); the operating margin is 4.2% (peer median 8.3%).
Valuation It trades at 8.5× forward earnings against a peer median of 14.7× (3rd cheapest of 18).
Price implies For today's price to make sense, revenue must grow about -13% a year for seven years (Req g). Recent delivered growth is +9%, so the hurdle is -22 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 1.3 points below its cost of capital (10.8% WACC).
Next results Next results expected around 17 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | HK$36.5B | HK$35.7B | HK$33.4B | HK$32.9B | HK$30.1B |
| Revenue growth | — | +7% | +1% | +10% | — |
| Gross profit | HK$4.28B | HK$4.11B | HK$3.48B | HK$2.71B | HK$2.78B |
| EBITDA | HK$3.82B | HK$3.62B | HK$3.20B | HK$2.77B | HK$2.74B |
| Net income | HK$972M | HK$795M | HK$482M | HK$288M | HK$454M |
| Free cash flow | HK$2.73B | HK$2.01B | HK$2.05B | HK$1.76B | HK$1.28B |
| Capital expenditure | HK$2.41B | HK$2.04B | HK$2.20B | HK$2.44B | HK$2.09B |
| Total debt | n/a | HK$677M | HK$711M | HK$784M | HK$864M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Nexteer Automotive 1316.HK | $1.40B | -14% | +6% | 4% | 8.5× | -13.5% |
| Jtekt 6473.T | $3.82B | -1% | +4% | 5% | 11.4× | 1.2% |
| Zhejiang Shibao 1057.HK | $1.32B | -33% | +22% | 4% | n/a | 26.8% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 1316.HK | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -5.0% | -4.5% | 10th lowest of 21 |
| 6-month return | -13.7% | -24.9% | 6th highest of 21 |
| Distance from 52-week high | -46.9% | -44.7% | 9th lowest of 21 |
| Revenue growth (TTM) | +6.0% | +12.3% | 8th lowest of 21 |
| Operating margin | 4.2% | 8.3% | 7th lowest of 21 |
| Forward P/E | 8.5× | 14.7× | 3rd cheapest of 18 |
| Growth the price implies (Req g, 7 yrs) | -13.5% | -5.9% | 4th least demanding of 14 |
| Growth delivered (Del g) | +8.7% | +10.1% | 6th lowest of 14 |
| Hurdle (Req g minus delivered) | -22.2 pp | -13.6 pp | 3rd least demanding of 14 |
| ROIC minus cost of capital | -1.3 pp | +1.2 pp | 5th lowest of 21 |
| EV / EBITDA | 1.9× | 6.8× | 2nd cheapest of 12 |
| Net debt / EBITDA | -1.1× | 0.2× | 4th least indebted of 13 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Nexteer Automotive 1316.HK | Hong Kong | $1.40B | -14% | +6% | 4% | 8.5× | -13.5% | +8.7% |
| Lingyun Industrial 600480.SS | China | $1.41B | -25% | +3% | 5% | 17.1× | -12.3% | +8.0% |
| Zhuzhou Times New Materials Technology 600458.SS | China | $1.39B | -17% | +1% | 2% | 14.7× | n/a | n/a |
| SEDEMAC Mechatronics SEDEMAC.NS | India | $1.42B | +56% | +61% | 15% | 73.8× | n/a | n/a |
| CIE Automotive India CIEINDIA.NS | India | $1.42B | -26% | +12% | 11% | 12.2× | 8.6% | +9.2% |
| Dn Automotive 007340.KS | South Korea | $1.46B | -20% | +17% | 15% | n/a | -16.2% | +35.6% |
| Tong Yang Industry 1319.TW | Taiwan | $1.35B | -1% | -12% | 15% | 10.9× | -5.9% | +7.7% |
| Jiangsu Bojun Industrial Technology 300926.SZ | China | $1.35B | -31% | +54% | 13% | 9.0× | n/a | n/a |
| Kunshan Huguang Auto Harness 605333.SS | China | $1.32B | -16% | -2% | 2% | 31.8× | n/a | n/a |
| Zhejiang Shibao 1057.HK | Hong Kong | $1.32B | -33% | +22% | 4% | n/a | 26.8% | +25.6% |
| Wuxi Best Precision Machinery 300580.SZ | China | $1.32B | -40% | +12% | 16% | 29.4× | 20.8% | +10.1% |
| OPmobility OPM.PA | France | $1.51B | -42% | -3% | 4% | 8.2× | -8.1% | +7.6% |
| Zhejiang Fenglong Electric 002931.SZ | China | $1.30B | -31% | +2% | 0% | n/a | n/a | n/a |
| Longhorn Auto 301488.SZ | China | $1.29B | -32% | +34% | 2% | 82.0× | n/a | n/a |
| Slcorp 005850.KS | South Korea | $1.54B | -25% | +10% | 8% | 5.7× | -19.7% | +15.9% |
| ASK Automotive ASKAUTOLTD.NS | India | $1.28B | +35% | +39% | 9% | 34.3× | n/a | n/a |
| Varroc Engineering VARROC.NS | India | $1.28B | +40% | +22% | 6% | 31.5× | 29.9% | +15.1% |
| Gentherm THRM | United States | $1.55B | -7% | +9% | 5% | 9.8× | 21.7% | +10.4% |
| Jiangsu Yunyi Electric 300304.SZ | China | $1.27B | -19% | +14% | 17% | 16.9× | 17.1% | +23.4% |
| Johnson Electric 0179.HK | Hong Kong | $1.56B | -53% | 0% | 8% | 10.8× | -16.4% | +3.1% |
| Hong Leong Asia H22.SI | Singapore | $1.26B | -40% | +17% | 9% | 9.5× | -12.9% | +2.9% |