The Point for Japan

Research evidence excerpt

The Point for Japan

Point |

Monday, 22 June 2026

Company | Fixed Income | Key Rating and Target Price Changes

Company

GS Yuasa (6674.T) - Announces +20% or higher price hikes for domestic

automotive lead-acid batteries (replacement)

Today, June 19, GS Yuasa announced that it will raise prices by 20% or more for all

types of replacement automotive lead-acid batteries (automotive, motorcycle, and

cycle service), effective for shipments starting from August 1. The news leaves a

positive impression. Based on simple calculations using guidance, we calculate an

attendant OP boost of over ¥5bn. While the actual impact is unlikely to match our

rough calculation as 1) some of the boost may already be included in guidance, and

2) the price increase also reflects the pass-through of raw material cost increases.

We believe expectations have heightened for upward revisions to conservative

guidance at the H1 results announcement when the outlook for Middle East

situation costs also becomes clear.

Takayuki Naito

Daikin Industries (6367.T) - Climate, copper, and the currency: Lots of moving

parts

Domestic industry-wide room AC shipments rose 24% YoY in May, due partly to

seasonality, with total shipments up 27% in April-May. However, demand is being

pulled forward ahead of new energy-saving standards from April 2027. Daikin says

it has the top share for domestic room ACs (c20%), but with a low sales

dependence on large electrical retailers we think Daikin sales are lagging the

market. FY3/27 guidance assumes domestic revenue rises 3% YoY, with room AC

unit growth of 7%. The onset of El Nino may also boost sales of room ACs,

especially in markets with low room AC diffusion like Europe (estimated at c20%).

FY3/27 guidance assumes a copper price of $12,000/MT versus the spot price of