Omron (6645.T): JMDC share price decline impact and battery/semiconductor upside reflected. TP raised in view of strong underlying business; Buy

研报英文原文证据摘录

Omron (6645.T): JMDC share price decline impact and battery/semiconductor upside reflected. TP raised in view of strong underlying business; Buy

Goldman Sachs Omron (6645.T)

had when it made JMDC a consolidated subsidiary, Omron is likely to face pressure to

recognize a goodwill impairment on its JMDC stake. It is difficult to gauge the level at

which the write-down will be taken and the size of the impairment. In our estimates, we

have factored in a ¥12 bn impairment in our FY3/27 estimates, similar in scale to the

aforementioned goodwill impairment recorded in the FY3/25 full-year results,

which was booked when the stock was trading near its 2025 lows. In our full-year

profit variance analysis, we have factored this in as a negative impact in corporate

eliminations.

Exhibit 1: JMDC - Trends in share price, 12m/24m Street Exhibit 2: Omron - Trends in operating profit bridge by

Consensus operating profit (EPS) forecasts factors

Price (JPY) FY1 OP (JPY mn) FY2 OP (JPY mn) (JPY mn)

18,000 110,000

16,000 100,000

14,000

90,000

12,000

10,000 80,000

8,000 70,000

6,000

60,000

4,000

2,000 50,000

OP FX OP FX OP FX OP

0 Sales GPM costs Others Sales GPM Others costs Sales GPM Others costs

Fixed FY3/27E Fixed FY3/28E Fixed FY3/29E FY3/26A

Source: LSEG Data & Analytics, Goldman Sachs Global Investment Research Source: Company data, Goldman Sachs Global Investment Research

We revise up our estimates for the underlying business, mainly in IAB

On the other hand, Omron’s underlying business is thriving. We have been more bullish

on a number of FA stocks including Omron (link), and since then, the monthly statistics,

leading indicators, and comments from Omron’s management have all been more

positive than we or the market had expected. We reiterate our view that the upside in