F3/27 1Q Results: Plans for Improvement from 2Q but Uncertainty Persists

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M

Update

July 31, 2026 04:05 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

ALPS ALPINE (6770) | Japan

Shoji Sato

Equity Analyst

F3/27 1Q Results: Plans for

Improvement from 2Q but

Uncertainty Persists

AlphaSignals Earnings Reaction

Sota Harashima

Equity Analyst

ALPS ALPINE (6770.T, 6770 JT)

Weakens our thesis

Modest shortfall

Modest revision lower

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Electronic Components | Japan

Stock Rating

Industry View

Price target

Shr price, close (Jul 31, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Overweight

In-Line

¥3,000

¥2,214

¥432.0

¥2.9

The company looks to a sharp rise in camera actuator sales in 2Q.

The degree to which higher memory prices can be passed on in prices to

customers looks to be a major variable for profit.

The firm expects to receive compensation payments from mobility customers in

2H tied to reviews of development plans.

1Q results: OP was down by ¥4.6bn YoY and ¥9.7bn QoQ to a loss of ¥0.9bn (our

forecast ¥3.7bn profit, FactSet consensus ¥1.0bn profit). By segment, Components

profit was ¥2.8bn (last 1Q ¥6.2bn profit, 4Q ¥2.7bn profit), Sensor losses were ¥0.5

bn (¥2.1bn loss, ¥0.9bn loss) and Mobility losses ¥3.1bn (¥0.5bn loss, ¥6.4bn profit).

F3/27 guidance: OP targets are unchanged for both 1H at ¥9.0bn profit and full year

at ¥48.5bn (our forecast: ¥49.1bn, FS: ¥44.5bn). On this basis, the company is

looking for profit of ¥9.9bn in 2Q in a big improvement vs. 1Q loss of ¥0.9bn. It said

it believes this is achievable with help from a sharp rise in camera actuator sales and

recouping of R&D costs from customers. Its target for 2H includes compensation

payments from mobility customers who have reviewed development plans.

Our view: Cost growth arising from higher memory prices is now expected to weigh

in with an increase of close to ¥20bn, vs. ¥16bn initially. We think Mobility earnings

are likely to improve from 2Q with progress in recovering memory price growth –

…