Alps Alpine (6770.T): Q1 results - Somewhat negative. Shareholder returns encouraging, but execution ability set to be tested

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31 Jul 2026 08:51:15 ET │ 10 pages

Alps Alpine (6770.T)

Q1 results - Somewhat negative. Shareholder returns encouraging, but

execution ability set to be tested

CITI'S TAKE

The firm operated at a ¥900mn loss in April-June (Q1), undershooting the

¥1.2bn consensus. While the shares are likely to be supported near term by

the new ¥30bn share buyback announced today alongside results, we are

concerned that the (¥16bn-20bn) hit from soaring memory prices is

heavier than the ¥16bn initially assumed. Management explained that

price pass-through negotiations for general material price increases are

currently underway, but if the pass-through amount causes a plan miss,

the gross margin outlook from FY3/28 could be negatively affected. Until

sufficient price pass-through progress is confirmed, the market may not

be convinced that negatives have been exhausted.

Buy

Price (31 Jul 26 15:30)

¥2,214.0

Target price

¥2,800.0

Expected share price return

26.5%

Expected dividend yield

2.8%

Expected total return

29.3%

Market Cap

¥432,095M

US$2,708M

Takayuki NaitoAC

Implications —Smartphone actuator sales appear set to double QoQ in JulySeptember , and guidance for components looks solid . Our outlook remains

unchanged that this will again become a profit driver from FY3/28. We note that

amusement haptics demand appears somewhat weak versus initial plans.