Nifco (7988) Solid short-term earnings, scrutinizing sustainable growth scenario

研报英文原文证据摘录

Nifco (7988) Solid short-term earnings, scrutinizing sustainable growth scenario

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

03 July 2026

Nifco (7988) Overweight

7988.T, 7988 JP

Solid short-term earnings, scrutinizing sustainable Price (03 Jul 26):¥5,046

growth scenario Price Target (Dec-26):¥5,600

We reiterate our Overweight rating and December 2026 price target of ¥5,600. We Japan Equity Research

fine-tune our earnings estimates to reflect recent market developments. We

Autos & Auto Parts

forecast consolidated operating profit of ¥52.3 billion in FY2026, ¥56.3 billion in

FY2027, and ¥60.0 billion in FY2028. We expect start-up costs and depreciation Akira Kishimoto AC

from new plants in Mexico and India to weigh on earnings in the short term, but (81-3) 6736-8646

akira.x.kishimoto@jpmorgan.com

believe profitability will gradually recover as unit prices continue to rise in Japan

Wencong Zhang

and North America and price hikes offset tariffs and raw material inflation. For (81-3) 6736-8627

shareholder returns, we assume a ¥16.0 billion share buyback in FY2026 based on wencong.zhang@jpmorgan.com

the capital allocation plan in the company’s medium-term business plan. JPMorgan Securities Japan Co., Ltd.

• Solid short-term earnings likely to exceed guidance: For FY2026, we

expect continued increases in unit prices in the domestic industrial plastic parts Style Exposure

& components segment and higher content per vehicle as more products are

featured in HEV models in North America. Although as a result of new plants

in Mexico and India startup costs will increase and depreciation will also rise,

the absence of unrealized inventory effects should support a stable profit

growth trend. We make minor adjustments to our consolidated operating profit