Profit low in a tough environment, but PBR, dividend yield should support stock

研报英文原文证据摘录

Profit low in a tough environment, but PBR, dividend yield should support stock

8 July 2026

Mizuho Securities Equity Research Autos and Auto Parts

Forecast Revisions

TS Tech (7313)

Rating: Neutral Price Objective ¥1,900

Spotlight: See Figure 9 for earnings by ACT: Reiterating Neutral rating

region Automobile production continues to decline at Honda, which accounts for

roughly 90% of TS Tech’s consolidated sales and is the company’s main

Share price (7 Jul) ¥1,777 customer. The decline has recently been particularly severe in China,Implied upside +7%

and we are not optimistic about the future. We expect profits to remainTSE Segment Prime

historically low for now, even when factoring in the creation of a very efficient

Major indicators (E = Mizuho estimates) production system, efforts to increase sales to non-Honda customers,Market capitalization (¥b) 220.35

Shares outstanding (m) 124.00 and the launch of new products and technologies, which are outlined

Potential share dilution (m) – in management’s medium-term plan starting in FY3/27. Given the stableDaily turnover (thou, mo. avg.) 425.98

Foreign ownership (%, 3/26) 14.7 dividends (company’s DOE target: at least 3.5%) and dividend yield (5.2%

DPS(¥, 3/27E) 92.0 based on our forecast), though, we anticipate little downside risk for theDividend Yield(%, 3/27E) 5.2

Payout ratio(%, 3/27E) 129.3 stock, which is currently trading at 0.67x our end-FY3/27 BPS estimate.

Equity ratio(%, 3/27E) 72.9

BPS(¥, 3/27E) 2,634.7 KNOW: Lowering OP forecast on drop in auto production in China

PBR(x, 3/27E) 0.7 We lower our FY3/27 OP estimate from ¥16.4b to ¥12.3b. We drop ourROE(%, 3/27E NP basis) 2.7

ROA(%, 3/27E Pretax basis) 3.7 assumption for Honda’s global automobile production volume from 3.39m

Note: No.