We take positive view of growth at electronics segment via acquisition of Iwasaki Electric

研报英文原文证据摘录

We take positive view of growth at electronics segment via acquisition of Iwasaki Electric

Global Markets Research

15 June 2026Stanley Electric

6923.T 6923 JP / EQUITY: JAPAN AUTOS & AUTO PARTS

RatingWe take positive view of growth at electronics

Remains Buysegment via acquisition of Iwasaki Electric

Target price

We forecast cost reforms for automotive lamps and faster sales growth at electronics Increased from 3,800 JPY 4,300

segment, increased lighting sales to government agencies and other industries

Closing price JPY 3,604We reiterate Buy rating, take positive view of strong profit growth on improved lamp 12 June 2026

earnings and new addition to consolidated accounts

We reiterate our Buy rating on Stanley Electric. At the automotive equipment segment, we expect Implied upside +19.3%

global output at Japanese OEMs to fall 2% y-y in 27/3, but forecast a 1–2% rise in lamp sales

volumes as some of them revamp large models. While we expect automotive equipment sales (ex

forex effects) to be flat y-y because of increased downward pressure on prices from customers, we

think that Stanley Electric will be working to overhaul its product design, reduce parts costs by Relative performance chart

standardizing parts and materials, and reduce manufacturing costs via automated assembly

processes. We expect rationalization benefits to boost profits by ¥14.3bn in 27/3, up from ¥6.5bn in

26/3 and offsetting the impact of price cuts. We also expect further cost savings from 28/3 if these

initiatives cover more models and more parts and materials. We expect the electronics segment to

benefit not only from increased sales of backlights for PCs and automotive applications, but also from

synergies with Iwasaki Electric, the acquisition of which was completed in April.