Updating our forecasts: Raising forecasts and target price

研报英文原文证据摘录

Updating our forecasts: Raising forecasts and target price

Global Markets Research

28 July 2026Mabuchi Motor

6592.T 6592 JP / EQUITY: JAPAN ELECTRONIC PARTS

RatingUpdating our forecasts: Raising forecasts and

Remains Neutraltarget price

Target price

We estimate that earnings recovered in Apr–Jun on recovery in output at Increased from 1,670 JPY 1,700

Chinese automakers

Closing price

We keep our Neutral rating, nudge up forecasts and target price on new forex 27 July 2026 JPY 1,705.5

assumptions

We update our earnings forecasts and nudge up our target price for Mabuchi Motor to Implied upside -0.3%

¥1,700 after revising our USD/JPY assumption from 155 to 160. We make no change to

our outlook for the fundamentals other than changing our forex assumptions, and we also

reiterate our Neutral rating on the stock. In Apr–Jun, Chinese automakers appear to have

increased production for export markets. Mabuchi Motor has a large share of the market Relative performance chart

for small motors supplied to Chinese manufacturers, and we thus expect its earnings to

recover.

We expect a substantial increase in shipments for power seats in 26/12 with

increase in its market share

We expect increased shipments of medium-sized motors for power seats to drive earnings

at Mabuchi Motor in 26/12 and 27/12. To date, shipments for power seats have mainly

been to European manufacturers, but Japanese manufacturers have been increasingly

adopting the company's products. Our forecasts assume that sales of these motors will

rise 41% y-y to ¥16.2bn in 26/12 and rise around 15% in 27/12 and beyond. We note that

sales of these motors rose 44.5% y-y to ¥3.7bn in 26/12 Q1, and management is guiding

for full-year 26/12 sales to increase 24.6% to ¥14.4bn based on a USD/JPY assumption of

150.