Denso/Aisin Q1 FY3/27: Similar weak Q1 results, guidance maintained but lower earnings expectations seem unavoidable

研报英文原文证据摘录

Denso/Aisin Q1 FY3/27: Similar weak Q1 results, guidance maintained but lower earnings expectations seem unavoidable

31 July 2026

Price Target Change

Japan Autos & Auto Parts

Denso/Aisin Q1 FY3/27: Similar weak Q1 results, guidance

maintained but lower earnings expectations seem unavoidable

Masahiro Akita On July 31st, during market hours, Denso and Aisin announced their Q1 FY3/27 results. Both

+81 3 6777 6998 Denso and Aisin missed expectations in Q1 and maintained profit guidance that remains

masahiro.akita@bernsteinsg.com below consensus, making downward revisions to market expectations unavoidable.

Tomohiro Kashimoto Denso – higher material and quality costs weighed on its earnings: Q1 FY3/27 OP

+81 3 6777 6975

tomohiro.kashimoto@bernsteinsg.com came in at JPY 84 bn (-21% YoY), 23% below consensus. The miss was primarily driven

by higher material costs, including copper, aluminum, and platinum (JPY -40 bn YoY),

and unexpected quality costs (JPY -15 bn YoY), which were related to Europe, although

details remain limited. For FY3/27, the company raised its revenue guidance to JPY 7.8

tn (+1% vs. previous) on a weaker yen, while leaving OP and NP guidance unchanged,

both remaining 8% below consensus. Relative to its previous guidance, Denso now

expects material costs to be JPY 75 bn higher, which it plans to offset through weaker

yen, higher production volumes, and a JPY 15 bn reduction in its uncertain risk buffer to

absorb the unexpected quality costs incurred in Q1. We continue to see upside potential

from FX, although other sources of improvement appear limited. Regarding memory

procurement, management indicated supply remains stable, but rising prices have become

a headwind. The company plans to address this through its Strategic Customer Agreement