Consumer Electronics: Sharp 1Q results

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

07 August 2026

Consumer Electronics

Sharp 1Q results

Negative: 1Q operating profit was ¥8.2 billion (Bloomberg consensus: ¥6.6

billion), and full-year guidance was lowered by ¥19.0 billion to ¥30.0 billion

(Bloomberg consensus: ¥44.1 billion). This revision reflects increased material

costs, such as for resins, that were not factored into initial plan, as well as a change

in forex assumptions, and we believe the harshly competitive environment for

white goods, televisions, and smartphones also contributed to the shortfall. While

the stock market appears to have been somewhat prepared for the risk of a shortfall

versus guidance, we believe the magnitude was greater than anticipated.

Results summary & FY2026 guidance revision: 1Q operating profit was

¥8.2 billion, down 46% YoY. Profitability deteriorated in the Smart Life

segment (white goods and televisions), which we believe was primarily due to

ongoing yen depreciation and intensifying competition, and in the

Communications segment (smartphones), which we attribute rising memory

costs. Management cut full-year operating profit guidance by ¥19 billion to

¥30 billion. While the initial plan did not factor in the impact of higher resin

and fuel costs, the revised guidance reflects these negative effects, as well as

a change in forex assumption from ¥156/$ to ¥160/$. By segment, Smart Life

guidance was lowered from ¥41 billion to ¥25 billion, mainly due to rising costs

and the weakening yen. In Display Devices, the company now expects an

operating loss of ¥12 billion (previously a ¥6 billion loss), partly due to changes

in the demand outlook for certain applications.

Japan Equity Research

Technology - Consumer Electronics/

Industrial Electronics/Precisions

Junya Ayada AC

(81-3) 6736 8631

Mio Shikanai

(81-3) 6736 1313

JPMorgan Securities Japan Co., Ltd.