Earnings update: We retain profit forecasts

研报英文原文证据摘录

Earnings update: We retain profit forecasts

Global Markets Research

29 July 2026Alps Alpine

6770.T 6770 JP / EQUITY: JAPAN ELECTRONIC PARTS

RatingEarnings update: We retain profit forecasts Remains Neutral

Target price JPY 2,480We like business restructuring initiatives such as introduction of new P/L Remains

controls, will be looking out for signs of results

Closing price JPY 2,207.0We retain our earnings forecasts and Neutral rating 28 July 2026

We retain our profit forecasts for Alps Alpine despite revising our assumptions, including

Implied upside +12.4%changing our USD/JPY assumption from 155 to 160, and we also retain our target price of

¥2,480 and our Neutral rating. We do not have the precise details of compensation for

losses incurred by Alps Alpine as a result of changes to the BEV roadmap of one of its

customers, and also assume that the contribution to earnings from changes to our forex

Relative performance chartassumptions will be within the bounds of forecast error.

Stepping up efforts to improve P/L controls by appointing external talent to mobility

segment

Alps Alpine excels at creating sophisticated human machine interfaces (HMIs) by

incorporating various sensors, sensor algorithms, and actuators into contact points such

as tactile switches. HMI is an area where human perceptions are a key evaluation

criterion, and because product pricing is difficult, to date there have tended to be a large

number of unprofitable projects. In an effort to break out of this impasse, the company has

been promoting external talent in order to strengthen cost controls and thoroughly manage

project P/L at the point of order. There should have been a fundamental difference

between P/L controls for components, where the assumption is that demand will grow, and