F3/27 1Q Results: Awaiting Profitability Improvement in Connectors

研报英文原文证据摘录

F3/27 1Q Results: Awaiting Profitability Improvement in Connectors

Update

July 29, 2026 10:45 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MJapan Aviation Electronics Industry (6807) | Japan Sota Harashima

Equity Analyst

F3/27 1Q Results: Awaiting Sota.Harashima@morganstanleymufg.comShoji Sato +81 3 6836-8897

Shoji.Sato@morganstanleymufg.com +81 3 6836-8404

Profitability Improvement in

Connectors

AlphaSignals Earnings Reaction

Japan Aviation Electronics Industry (6807.T, 6807 JT)

Unchanged Modest shortfall Modest revision lower Electronic Components | Japan

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Equal-weight

Industry View In-Line

Source: Company data, Morgan Stanley Research Price target ¥2,600

Shr price, close (Jul 29, 2026) ¥2,462

Mkt cap, curr, basic (bn) ¥165.9

Key Takeaways Avg daily trading value (bn) ¥0.6

1Q OP of ¥300mn fell short of both our forecast of ¥600mn and consensus of

¥1.4bn.

Connector OPM was 1.5%, below our forecast of 2.8%, due to higher raw material

costs and an unfavorable product mix.

F3/27 OP guidance of ¥9.5bn (1H ¥3.8bn, 2H ¥5.7bn) was maintained, but the

hurdle for achieving the target appears to have risen somewhat.

We believe the share price is likely to face correction pressure in the near term.

1Q results: OP was ¥300mn, down ¥1.2bn YoY, consisting of ¥800mn from

connectors (down ¥1.6bn YoY) and ¥700mn from aerospace (up ¥500mn YoY).

Connector sales of ¥53.3bn exceeded our forecast of ¥51.1bn, supported by strong

demand from industrial equipment and automotive applications. However, OPM

remained low at 1.5%, reflecting higher raw material costs driven by rising copper

and gold prices, an unfavorable product mix, and increased labor costs.