Yokohama Rubber: Japan Summit 2026: Focus on Resilience Against Cost Inflation

Research evidence excerpt

Yokohama Rubber: Japan Summit 2026: Focus on Resilience Against Cost Inflation

Update

May 22, 2026 01:14 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MYokohama Rubber (5101) | Japan Shinji Kakiuchi

Equity Analyst

Japan Summit 2026: Focus on Shinji.Kakiuchi@morganstanleymufg.comHayato Takashima +81 3 6836-5416

Research Associate

Hayato.Takashima@morganstanleymufg.com +81 3 6836-5414

Resilience Against Cost Inflation

At our Japan Summit 2026 investor meeting, management made the following

comments.

Impact from Middle East situation: Company assumes a ¥38bn full-year drag for

Yokohama Rubber (5101.T, 5101 JT)

F12/26. It expects to offset the impact with product price hikes and a boost from a

Tires | Japan

weaker yen than initially assumed. Yokohama said it has implemented price hikes in Stock Rating Equal-weight

Japan and Europe, reflecting solid sales over the past roughly two years, while it Industry View In-Line

Price target ¥7,400

views price hikes as difficult in North America. Shr price, close (May 21, 2026) ¥6,356

Mkt cap, curr, basic (bn) ¥1,002.4

North America sales trends: 1Q unit sales fell 17% YoY, for weaker growth than the Avg daily trading value (bn) ¥4.5

industry overall (10% decline; source: USTMA). Sales fell because of a reactionary

decline following increased sell-in shipments to a major customer in 4Q a year

earlier. Yokohama's tires also now look more expensive after peers cut prices at the

end of last year. It adjusted prices in April this year, a move that is already reflected

in company plans, and unit sales have been recovering gradually recently.

Strengthening cost competitiveness: The new China plant (started operations in

March 2026) is expected to deliver substantial cost reductions compared with the

old plant.