Auto Parts: Auto Parts Names Scorecard: Still Positive on Non-autos Growth

研报英文原文证据摘录

Auto Parts: Auto Parts Names Scorecard: Still Positive on Non-autos Growth

IdeaM

Starting points for stock selection

(1) Non-automotive business (AI data centers, etc): Given an outlook for persistent

sluggish growth in auto parts business, we think stocks that are likely to see profit

contributions from non-automotive business will continue to attract attention. Musashi

Seimitsu's HSC (Hybrid Super Capacitor) products for high-voltage server racks show

potential for significant demand growth, as they help absorb power fluctuations. We

expect NHK Spring's HDD suspensions will continue to deliver double-digit growth in

precision suspensions for nearline HDDs used in data centers. We see substantial potential

for growth in demand for GS Yuasa's storage batteries for data center UPS

(uninterruptible power supply) systems in the US and for energy storage systems for

renewable energy applications. Stanley Electric acquired Iwasaki Electric, a manufacturer

of streetlights and other lighting products, prompting expectations for overseas sales

expansion supported by synergy effects. While we think medium-term growth

expectations for data center related business is already priced in to some extent, we still

see room for re-rating from a valuation perspective.

Exhibit 2: Auto parts suppliers: Scorecard

Non-automotive Contents per vehicle China competitiveness Business reform Stockholder return

(For AIDC, etc.) (xEV/ADAS, etc.) (Local OEM business) (Portfolio review) (Total payout ratio)

Denso ＋＋＋：Inverter ＋＋

Aisin ＋＋：HEV mission ＋

Toyota Boshoku

Toyoda Gosei ＋＋：Airbag ＋ ＋: Ashimori ＋

Tokai Rika

Koito ＋：LiDAR review ＋＋

TS Tech ＋＋

Musashi ＋＋＋：HSC ＋：HEV gear ＋

F.C.C. ＋

Stanley ＋ ＋＋：Iwasaki ＋

Unipres

EXEDY ＋：M&A ＋＋

Nifco ＋＋：resin product ＋ ＋

NHK Spring ＋＋：HDD

NOK ＋＋：Eagle ＋