AeroEdge (7409.T): Beyond the Cycle: Competitive advantages in the aeroengine business cycle reaffirmed; reiterate Buy

研报英文原文证据摘录

AeroEdge (7409.T): Beyond the Cycle: Competitive advantages in the aeroengine business cycle reaffirmed; reiterate Buy

Goldman Sachs AeroEdge (7409.T)

The LEAP engine is installed on the latest next-generation narrow-body aircraft from

Boeing and Airbus. For the Airbus A320neo family, a competing engine exists in the form

of Pratt & Whitney’s PW1100G-JM, but the LEAP engine’s market share in this aircraft

type exceeds that of its rival. According to the company, pilots rate the LEAP engine

highly for its responsiveness to throttle lever inputs and superior handling

characteristics, while from an MRO perspective, it is also well regarded for the lower

likelihood of unplanned parts replacement due to unexpected wear, making planned

MRO operations easier. The company noted that the LEAP engine incorporates multiple

weight-reduction technologies and, while representing an evolution of conventional

engines, is a stable and reliable engine that introduces new technology.

Outlook for the mass production business of LEAP engine titanium aluminide blades

For the mass production of TiAl blades for LEAP engines, materials are supplied by

Safran. As a result, the company’s variable cost ratio is approximately 30%, and its

marginal profit ratio is high. However, from 2027, it plans to begin vertical integration of

TiAl materials through its own casting process, and commented that the variable cost

ratio is expected to rise above the current level.

In terms of TiAl blade shipment volumes, the company expects growth of +32.9% in

FY6/26 and +45–55% in FY6/27, both relative to FY6/25. At the same time, the

company commented that the production plans indicated by OEMs are updated

monthly, and that these are currently trending above its existing guidance. However, as