Nexteer Automotive Group Limited

SHSC:1316 Stock Report

Market Cap: HK$7.2b

Nexteer Automotive Group Valuation

Is 1316 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1316 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1316 (HK$2.86) is trading below our estimate of fair value (HK$3.44)

Significantly Below Fair Value: 1316 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1316?

Key metric: As 1316 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1316. This is calculated by dividing 1316's market cap by their current earnings.
What is 1316's PE Ratio?
PE Ratio50x
EarningsUS$18.44m
Market CapUS$922.38m

Price to Earnings Ratio vs Peers

How does 1316's PE Ratio compare to its peers?

The above table shows the PE ratio for 1316 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.5x
819 Tianneng Power International
3.7x10.8%HK$7.3b
179 Johnson Electric Holdings
5.3x-1.7%HK$9.8b
1057 Zhejiang Shibao
15.4xn/aHK$8.6b
1571 Xin Point Holdings
5.7x6.0%HK$4.1b
1316 Nexteer Automotive Group
50x38.2%HK$7.2b

Price-To-Earnings vs Peers: 1316 is expensive based on its Price-To-Earnings Ratio (50x) compared to the peer average (7.5x).

Price to Earnings Ratio vs Industry

How does 1316's PE Ratio compare vs other companies in the HK Auto Components Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1809 Prinx Chengshan Holdings
3x4.5%US$622.39m
48 China Automotive Interior Decoration Holdings
1.7xn/aUS$3.62m
No more companies available in this PE range
1316 50.0xIndustry Avg. 6.6xNo. of Companies7PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1316 is expensive based on its Price-To-Earnings Ratio (50x) compared to the Hong Kong Auto Components industry average (6.8x).

Price to Earnings Ratio vs Fair Ratio

What is 1316's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1316 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio50x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: 1316 is expensive based on its Price-To-Earnings Ratio (50x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1316 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$2.86
HK$4.00
+39.8%
29.1%HK$6.59HK$2.00n/a16
Nov ’25HK$2.77
HK$4.00
+44.2%
29.1%HK$6.58HK$2.00n/a16
Oct ’25HK$3.33
HK$3.65
+9.6%
29.3%HK$6.59HK$1.49n/a16
Sep ’25HK$2.75
HK$3.78
+37.5%
30.9%HK$6.60HK$1.50n/a16
Aug ’25HK$3.42
HK$4.71
+37.8%
24.3%HK$6.99HK$2.20n/a15
Jul ’25HK$3.52
HK$4.76
+35.2%
23.6%HK$6.99HK$2.19n/a16
Jun ’25HK$4.03
HK$4.76
+18.1%
23.6%HK$6.99HK$2.20n/a16
May ’25HK$4.16
HK$4.70
+12.9%
23.9%HK$7.01HK$2.20n/a16
Apr ’25HK$3.68
HK$5.07
+37.7%
29.4%HK$8.00HK$2.20n/a16
Mar ’25HK$3.71
HK$5.74
+54.8%
26.5%HK$8.02HK$2.70n/a13
Feb ’25HK$3.49
HK$5.83
+67.1%
24.7%HK$8.01HK$2.71n/a15
Jan ’25HK$4.93
HK$5.90
+19.6%
24.7%HK$8.00HK$2.70n/a15
Dec ’24HK$4.92
HK$5.89
+19.8%
24.6%HK$7.98HK$2.70n/a15
Nov ’24HK$3.68
HK$5.86
+59.3%
25.5%HK$7.99HK$2.70HK$2.7715
Oct ’24HK$4.27
HK$6.04
+41.5%
22.3%HK$7.98HK$2.70HK$3.3315
Sep ’24HK$5.05
HK$6.05
+19.9%
22.1%HK$8.31HK$2.70HK$2.7516
Aug ’24HK$5.72
HK$6.59
+15.2%
22.4%HK$9.16HK$4.48HK$3.4214
Jul ’24HK$4.09
HK$6.79
+66.1%
22.4%HK$9.20HK$4.50HK$3.5214
Jun ’24HK$3.58
HK$6.72
+87.6%
21.3%HK$8.42HK$4.50HK$4.0314
May ’24HK$4.38
HK$6.81
+55.5%
21.2%HK$8.74HK$4.50HK$4.1614
Apr ’24HK$4.95
HK$6.82
+37.7%
21.1%HK$8.74HK$4.50HK$3.6814
Mar ’24HK$5.23
HK$7.25
+38.6%
20.1%HK$8.74HK$4.54HK$3.7113
Feb ’24HK$6.21
HK$7.20
+16.0%
21.3%HK$8.72HK$4.38HK$3.4914
Jan ’24HK$5.11
HK$7.36
+44.0%
22.9%HK$9.95HK$4.37HK$4.9314
Dec ’23HK$5.05
HK$7.23
+43.2%
22.9%HK$9.96HK$4.38HK$4.9214
Nov ’23HK$4.55
HK$7.23
+58.9%
21.5%HK$10.00HK$4.40HK$3.6815

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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