Toyota Boshoku (3116) Business briefing: Gradual recovery under tough business conditions

Research evidence excerpt

Toyota Boshoku (3116) Business briefing: Gradual recovery under tough business conditions

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Toyota Boshoku (3116) Neutral

3116.T, 3116 JP

Business briefing: Gradual recovery under tough Price (22 May 26):¥2,247

business conditions Price Target (Dec-26):¥2,400

Toyota Boshoku held its FY2025 business briefing on May 22. The company again Japan Equity Research

presented financial targets for FY2030, including operating profit of ¥150 billion

Autos & Auto Parts

and an operating margin of 7%. We expect vehicle interior value-added to rise over

the long term, looking ahead to the growing penetration of autonomous driving, but Wencong Zhang AC

over the near term the industry’s average content per vehicle remain flat under (81-3) 6736-8627

wencong.zhang@jpmorgan.com

fierce competition in costs. Toyota Boshoku is pursuing a drive to improve

Akira Kishimoto

earnings, such as introducing its next-generation seat frames, but industry peers are (81-3) 6736-8646

also making striking advances in technology, and it is hard for us to argue that the akira.x.kishimoto@jpmorgan.com

company’s competitive advantage has improved in relative terms. Management’s JPMorgan Securities Japan Co., Ltd.

approach to increasing capital expenditure and R&D through FY2030 is

unchanged, but it has few initiatives that look industry-leading, and our sense is

that it will take time to judge the impact of investment.

• Positive view of foundations towards FY2030, but recognize current

challenges: Through FY2030 Toyota Boshoku aims to strengthen its

capabilities as an Interior Space Creator (ISC) and focus on a new form of

collaboration with OEMs. We estimate that the next-generation seat frame