JTEKT "Maintain Buy; structural reform to be completed" (Buy) Sasaki

研报英文原文证据摘录

JTEKT "Maintain Buy; structural reform to be completed" (Buy) Sasaki

Global Research

8 June 2026ab

JTEKT Equities

JapanMaintain Buy; structural reform to be completed

Industrial, Diversified

12-month rating Buy

Raising PT to ¥2,950 and reiterating Buy rating

We are raising our earnings forecasts and lifting our price target from ¥2,570 to ¥2,950. 12m price target ¥2,950.0

We see substantial earnings improvement potential via JTEKT's efforts including the Prior : ¥2,570

growth of its N. American FA subsidiary ADC, lower loss costs in N. America, structural

Price (08 Jun 2026) ¥2,062

reforms in Europe, and COGS reductions. Current valuation looks undemanding and we

remain Buy. Earnings improving further should act as a share price catalyst, we think. RIC: 6473.T BBG: 6473 JP

Trading data and key metrics

Scenario of large earnings growth potential via company initiatives intact

52-wk range ¥2,166-1,078

The equity story for JTEKT, 'considerable earnings growth potential via company

Market cap. ¥656b/US$4.10b

initiatives' is unchanged. In N. America, profitability is improving on loss cost reductions,

Shares o/s 318m (ORD)

production reforms, and price revisions, and we expect earnings to improve in earnest

Free float 67%

from FY3/27. In Europe, structural reforms centring on business divestment are

progressing and operations are on track to reach profitability in FY3/28. JTEKT maintains Avg. daily volume ('000) 1,312

relatively high profit margins in Japan, China, and Asia, and if profitability improvements Avg. daily value (m) ¥2,438.6

in Europe and N. America continue, earnings growth should accelerate overall. Common s/h equity (03/27E) ¥826b

P/BV (03/27E) 0.8x

Focus on factory solutions and Steer-by-Wire system Net debt to EBITDA (03/27E) 0.2x