We expect growth in value per vehicle to pick up in 28/3 on increased BEV uptake: We reiterate Buy rating, take positive view of effective hike to shareholder return targets in new medium-term plan

研报英文原文证据摘录

We expect growth in value per vehicle to pick up in 28/3 on increased BEV uptake: We reiterate Buy rating, take positive view of effective hike to shareholder return targets in new medium-term plan

costs

(¥0.8bn) associated with the startup of new models at South Korean OEMs will weigh on profits in

North America through H1. We think soaring plastic prices will dent 27/3 profits by ¥4–5bn on a Source: LSEG, Nomura

gross basis but think that the company will be able to pass 70–80% of this on to selling prices, and Performance / Stock price data

thus factor in a dent of around ¥1bn. However, we expect profit growth to pick up from H2 into 28/3 (%) 1M 3M 12M

via revamps of big-selling models by Japanese OEMs and increased sales of electrified vehicles at Absolute returns 2.1 -2.1 39.5

South Korean OEMs. Relative to -6.6 -15.9 -12.8

Russell/Nomura Large

Advances in BEVs and autonomous driving are a tailwind for earnings, support from Japan Cap

strengthening order growth overseas Market capitalization (¥bn) 464.3

The shift to BEVs and autonomous driving are tailwinds for earnings at Nifco, as shown in Figure 1. 52-week low stock price (¥) 3,290

Electrification has been resulting in increased use of lightweight plastic parts, and we have also seen 52-week high stock price (¥) 5,562

use of new products, such as lighting and decorative trims to create more comfortable interiors and Shares outstanding (mn) 100.2

sensor fixings for ADAS. The company is also working to increase orders overseas, where its value Daily turnover (3-M avg) (¥mn) 1,533.2

Note: Market capitalization and shares

of components installed per vehicle is low. Value per vehicle is close to ¥10,000 in Japan but only outstanding in this table include treasury stock.

around ¥6,000–7,000 overseas on our estimates.