27/3 Q1 results: We raise our target price to ¥10,700

Research evidence excerpt

27/3 Q1 results: We raise our target price to ¥10,700

Global Markets Research

1 August 2026Niterra

5334.T 5334 JP / EQUITY: JAPAN AUTOS & AUTO PARTS

Rating27/3 Q1 results: We raise our target price to

Remains Buy¥10,700

Target price

Q1 represents steady start: We reflect in our forecast gains in North Increased from 10,300 JPY 10,700

American aftermarket spark plug market accompanying withdrawal of rival

Closing price JPY 9,415We raise forecast, hike target price to ¥10,700, reiterate Buy rating 31 July 2026

In Apr–Jun (Q1), earnings were boosted by increased shipments of spark plugs to the

Implied upside +13.6%North American market. A US rival is likely to withdraw from the spark plug business

following the bankruptcy of its parent company. Of the spark plugs supplied by this US

rival, aftermarket precious metal spark plugs are an area where we think Niterra could fill

in as supplier. We raise our earnings forecasts for 27/3 onwards and hike our target price

Relative performance chartto ¥10,700 on the prospect of growth in the company's share of the North American

aftermarket spark plug market. We reiterate our Buy rating.

Q1: Spark plug shipment volumes and product mix better than expected on market

share gains in North America

In Q1, sales rose 19.9% y-y to ¥203.7bn and operating profits rose 24.4% to ¥41.8bn (our

pre-release forecasts: ¥192.0bn, ¥36.0bn). The main reason why sales and operating

profits beat our prior estimates was spark plugs. We had assumed that the operating

margin at the automotive components segment would fall y-y in Q1 because of rising input

costs, but it rose in Q1 thanks to yen depreciation and growth in market share in high

value-added areas, as discussed above. Spark plug shipment volumes fell y-y in China