Toyota Boshoku (3116): 1Q results: Slow start as expected, but concerns on full-year guidance remain

研报英文原文证据摘录

Toyota Boshoku (3116): 1Q results: Slow start as expected, but concerns on full-year guidance remain

J P M O R G A N Asia Pacific Equity Research

01 August 2026

Toyota Boshoku (3116) Neutral

3116.T, 3116 JP

1Q results: Slow start as expected, but concerns on full- Price (31 Jul 26):¥2,241

year guidance remain Price Target (Dec-26):¥2,200

Neutral: 1Q FY2026 operating profit was ¥15.9 billion, in line with the Japan Equity Research

Bloomberg consensus estimate. Production cuts in China and inflationary pressure

Autos & Auto Parts

stemming from the Middle East situation were partly offset by yen depreciation

and efforts to curb fixed and other costs, limiting the YoY profit decline to Wencong Zhang AC

15%. Management lowered full-year operating profit guidance from ¥80 billion to (81-3) 6736-8627

wencong.zhang@jpmorgan.com

¥76 billion, but we think some assumptions remain somewhat optimistic, such as

Akira Kishimoto

the impact from rising input prices and business profitability in China. Capacity (81-3) 6736-8646

utilization at customers is currently in a state of flux, so we see a need to carefully akira.x.kishimoto@jpmorgan.com

assess even 1H guidance. JPMorgan Securities Japan Co., Ltd.

• Full-year guidance down, but still concerned over downside risk: We were

concerned 1Q operating profit would only reach ¥13 billion, but it came in at

¥15.9 billion, primarily due to yen depreciation and curbing of fixed costs.

Inflationary pressure stemming from the Middle East situation dented profit by

¥3.2 billion YoY in 1Q alone, but full-year guidance still assumes a ¥7.1 billion

dent. We expect the full-year gross impact from higher input costs to exceed

¥20 billion, with about ¥8 billion of this stemming from products not covered