Briefing/MTP: targets growth in autos, electronics; focus on capital efficiency

Research evidence excerpt

Briefing/MTP: targets growth in autos, electronics; focus on capital efficiency

25 May 2026

Tokyo Intraday Comment

Autos and Auto Parts Stanley Electric (6923)

Rating: Buy

Price Objective: ¥3,400

Company Note Stanley Electric’s FY3/26 results briefing, held after the market close on 22 May, left a

Share price: ¥3,488 (22 May) positive impression as it underlined the growth potential of the company’s automotive

Senior Analyst: Tairiku and electronics businesses as well as its strong focus on lifting capital efficiency. During

Sakaguchi the briefing, the company gave an overview of FY3/26 earnings and explanations on

its new medium-term plan (briefing materials). It had earlier announced FY3/26 results

on 12 May (see our report of 12 May). We intend to revisit our earnings forecasts and

price objective after further research, but we remain upbeat on the company’s ability

to generate profits, high profitability and growth potential, and shareholder returns. Key

points from the briefing and our views are as follows.

1) Overview of new medium-term plan: Stanley Electric aims to transform into a

company with a global competitive edge by reforming its business structure and earnings

structure, and to steadily achieve ROE of at least 10% as a result. The company’s

previous medium-term plans covered three-year periods, but its new plan spans four

years (two two-year periods), with a focus on speed amid major changes in the industry

environment. With the aim of maximizing capital efficiency, the company plans to

expand its business domains, reform its earnings structure, and maximize organizational

capabilities during the first two years of the plan, and to achieve growth through new

businesses, new markets, and a new corporate structure in the final two years.