In case you missed it, JAPAN Most Read Publications 5 May to 11 May 2026

研报英文原文证据摘录

In case you missed it, JAPAN Most Read Publications 5 May to 11 May 2026

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4Q results: FY2026 guidance for record high profit despite headwinds from high memory prices

Positive: Sony Group reported FY2025 operating profit of ¥1,447.5 billion (Bloomberg consensus estimate: ¥1,537.6 billion;

our estimate: ¥1,555 billion) and issued FY2026 guidance for ¥1,600 billion (¥1,629.3 billion; ¥1,570 billion). FY2025 operating

profit was stronger than expected when excluding ¥191.4 billion in one-time costs that were not included in guidance. We think

FY2026 guidance could also be higher than market expectations for conservative guidance. We think guidance for record high

profit, despite headwinds from higher memory and raw material prices, highlights Sony’s operational capabilities. Sony

announced a new joint venture with TSMC for image sensors, making further progress in converting to a fab-light model. It also

announced a share buyback for ¥500 billion as a result of raising its operating cash flow outlook.

Toyota Motor (7203) (Akira Kishimoto) (7203 JP, OW, PT ¥4,500)

4Q results: Watch cost pass-through in short term, robotics potential in medium term

Somewhat negative: FY2026 operating profit guidance for ¥3 trillion is well below our estimate and the Bloomberg consensus

estimate, and although actual expectations for guidance had likely fallen to around ¥3.5 trillion, we think guidance could be

disappointing. We see multiple upside factors, including the Middle East impact, forex assumptions, and tariffs, and as we think

underlying guidance could be around ¥4 trillion, we see no reason for excessive pessimism. However, we think several factors

could be viewed negatively, including mix deterioration from BEV growth and a short-term pause in efforts to reduce break-even