Toyo Tire (5105) 1Q results: Slightly higher hurdle for achieving guidance after a slow start

研报英文原文证据摘录

Toyo Tire (5105) 1Q results: Slightly higher hurdle for achieving guidance after a slow start

J P M O R G A N Asia Pacific Equity Research

15 May 2026

Toyo Tire (5105) Neutral

5105.T, 5105 JP

1Q results: Slightly higher hurdle for achieving guidance Price (14 May 26):¥3,848

after a slow start Price Target (Dec-26):¥4,100

Slightly negative: Profit declined in 1Q due in part to system problems causing Japan Equity Research

lost production and shipment issues. Toyo Tire expects sell-out of wide light truck

Autos & Auto Parts

tires (WLTRs) to remain firm in North America and aims to recover from 2Q

onward, but a full recovery in production seems unlikely. The company estimates Akira Kishimoto AC

a ¥16.6 billion negative impact to operating profit from the Middle East conflict, (81-3) 6736-8646

akira.x.kishimoto@jpmorgan.com

but did not change its full-year guidance on the assumption that price hikes and

Wencong Zhang

other measures will offset this. While it depends on future price hikes, we believe (81-3) 6736-8627

the hurdle for achieving guidance has risen somewhat, including whether the 1Q wencong.zhang@jpmorgan.com

shortfall can be made up. JPMorgan Securities Japan Co., Ltd.

• Weak 1Q sales due to system problems: 1Q operating profit was ¥20.6 billion

(-8% YoY), marking somewhat slow progress toward the full-year operating

profit guidance of ¥94.0 billion. According to management, problems with the

ERP system rollout in 1Q resulted in lost shipments of around 850,000 tires for

the domestic and export markets, which reduced operating profit by ¥4.0

billion. As a result, tire sales volume fell 11% YoY in 1Q, with domestic

replacement tire sales dropping a sharp 33% YoY. However, the company

noted that sell-out of WLTRs in North America continues to exceed the