Core Viewpoint - Bekaert has agreed to acquire Bridgestone's tire reinforcement business in China and Thailand, enhancing its market position in the global tire reinforcement sector [1][2]. Group 1: Acquisition Details - The acquisition includes the transfer of two tire cord manufacturing sites from Bridgestone, specifically Bridgestone (Shenyang) Steel Cord Co., Ltd. in China and Bridgestone Metalpha (Thailand) Co. Ltd. in Thailand [3]. - The transaction is expected to close in the first half of 2026, pending regulatory approvals and customary closing conditions [1]. Group 2: Strategic Implications - This acquisition strengthens Bekaert's Rubber Reinforcement division, which has been a leader in the tire reinforcement market for over 70 years, and reinforces its strategic partnership with Bridgestone [2][4]. - The long-term supply agreement ensures continuity of high-quality tire reinforcement products, supporting Bekaert's global manufacturing footprint [2]. Group 3: Financial Impact - The transaction is projected to add approximately €80 million to Bekaert's consolidated annual sales [4]. - The cash consideration for the acquisition is €60 million, which will be funded from available cash balances [4].

Core Insights - The approval of Prometeon Tyre Group's $300 million investment in Egypt marks a new phase in international cooperation within the Egyptian tire industry, contributing to the region's emergence as a strategic hub for global tire production [1][8] Investment Details - The project will initially focus on manufacturing tires for heavy-duty vehicles, construction equipment, and agricultural tractors, with plans to expand into passenger car tires later [2][10] - The products will leverage Egypt's logistical advantages via the Suez Canal and Red Sea ports, catering to domestic demand and exporting to the Middle East, Africa, and Europe [2][10] - This investment is one of the largest foreign investments in Egypt's tire manufacturing sector in recent years, filling a gap in high-end commercial vehicle tire production [2][10] Industry Trends - The investment by Prometeon is part of a broader trend, with major Chinese tire manufacturers also accelerating their capacity expansion in North Africa, indicating a clear "cluster effect" [3][12] - Other notable investments include: - Chaoyang Longma Tire's $190 million project in the Suez Canal Economic Zone, aiming for an annual production of 4.5 million passenger tires and 1 million heavy truck tires, expected to create around 1,400 jobs [5][12] - Sailun Group's $291 million project for 3.6 million radial tires annually, with groundbreaking in September 2025 [5][14] - China National Chemical Corporation's plan to invest $400 million to expand its Alexandria factory, adding 1.5 million tire capacity [5][14] Strategic Advantages - Egypt has become a strategic location for companies targeting European and African markets due to four key advantages: - Free trade agreements with the EU, EFTA, Turkey, and the African Continental Free Trade Area (AfCFTA) allow for zero or reduced tariffs on qualifying products, reducing costs for tire manufacturers [6][15] - The Suez Canal provides significant logistical advantages, enabling controlled logistics costs and rapid access to Middle Eastern, African, and Southern European markets [6][15] - A young and cost-effective labor force, with approximately 60% of the population under 30, offers a competitive edge for labor-intensive tire manufacturing [6][15] - A solid automotive industry foundation, with 23 assembly lines producing around 120,000 vehicles annually, creates substantial local demand for tires [6][15] Government Support - The Egyptian government is actively promoting policies to support foreign investment, including tariff reviews to protect local industries and the establishment of investor associations for streamlined administrative processes [8][17] - As projects like those from Prometeon, Longma, and Sailun materialize, Egypt is transitioning from merely a sales market to a comprehensive regional tire manufacturing center, reshaping its industrial landscape and impacting global tire supply chains [8][17]

引发带束层分离：这是最严重的安全隐患。带束层是轮胎承受压力和保持胎面稳定的关键结构，一旦发生分离，将极大增加车辆在行驶 中失控和碰撞的风险。 产生环状裂纹：偏移的嵌条暴露在外界环境中，容易因侵蚀而产生环状裂纹，进一步加剧安全风险。 主动召回，聚焦售后市场安全 日前，轮胎行业巨头普利司通美洲轮胎公司（BATO）向美国国家公路交通安全管理局（NHTSA）提交了自愿性合规缺陷报告，宣布在 美国市场启动一项轮胎召回计划。此次召回涉及旗下凡士通（Firestone）品牌的全路况LE3系列轮胎，共计约1742条，原因是存在制造缺 陷，可能引发严重的带束层分离风险。 制造缺陷直指核心安全部件 根据召回公告，此次涉事轮胎均为凡士通全路况LE3系列，规格为265/70R17，主要适配于轻型卡车、跨界车及SUV的售后换装市场。所 有问题轮胎均由普利司通位于北卡罗来纳州威尔森市的工厂生产，生产日期集中在2025年10月26日至11月8日这一短暂区间内。 问题的核心在于制造过程中的一个关键缺陷。普利司通公司指出，约50%的问题轮胎（约856条）存在"带束层边缘嵌条位置偏移"的问 题。这一看似微小的偏差，却可能带来致命后果： 降低耐用 ...

Leadership Changes - Bridgestone India has appointed Rajarshi Moitra as the new Managing Director effective January 1, 2026, succeeding Hiroshi Yoshizane [1] - Yoshizane will be promoted to Vice President and Senior Officer of Bridgestone Corporation, while continuing his role as Group President for Bridgestone Asia Pacific, India and China [2] Rajarshi Moitra's Background - Moitra has over 20 years of experience and joined Bridgestone India in 2019, initially leading the consumer business [3] - He has progressively taken on more responsibilities, including roles in consumer and commercial business, solution business, logistics, and supply chain management [4] Strategic Direction - The new leadership structure aims to advance Bridgestone India's transformation into a sustainable solutions company [5]

Core Viewpoint - Donghai Carbon Co., Ltd. has completed the acquisition of Bridgestone Carbon (Thailand) Co., Ltd. (BSCB) for 9.5 billion yen (approximately 64 million USD), enhancing its global carbon black operations and collaboration with Bridgestone [1] Group 1: Acquisition Details - The acquisition was conducted in partnership with Donghai Carbon's affiliate, Thai Donghai Carbon Products Co., Ltd. [1] - Following the acquisition, BSCB has been renamed Thai Donghai Carbon Products Rojana Co., Ltd. [1] - BSCB was previously a subsidiary of Bridgestone, supplying carbon black to its global production bases [1] Group 2: Strategic Implications - The integration of BSCB into Donghai Carbon's operations is expected to stabilize supply and enhance competitiveness [1] - Donghai Carbon aims to strengthen its global collaboration with Bridgestone through this acquisition [1] - Bridgestone anticipates that the acquisition will leverage Donghai Carbon's supply system, technology, and expertise in carbon black production to adapt to changing business environments and enhance long-term competitiveness [1] Group 3: Financial Performance - BSCB reported revenues of 10.4 billion yen and profits of 187 million yen for 2024 [1]

Core Viewpoint - Bridgestone's CEO anticipates a challenging second half of the year due to significant declines in truck tire demand in the U.S., tariff impacts, and production disruptions caused by cyberattacks [1][2] Group 1: Market Challenges - Since early August, there has been a sharp decline in demand for new truck tires in the U.S. as truck manufacturers have reduced production plans for the coming months [1] - The North American market is facing challenges such as tariff pressures, a slowdown in U.S. capital spending, and shifts in trade flows, testing Bridgestone's ability to maintain profit margins and sustained growth [1] - The company expects to incur approximately 25 billion yen (around 166 million USD) in tariff losses for the year, with an additional negative impact of about 10 billion yen expected from the U.S. economic slowdown [2] Group 2: Operational Adjustments - Bridgestone is forced to rely on overseas shipments to address production backlogs caused by cyberattacks, leading to additional costs due to U.S. tariffs triggered by imports [2] - The company plans to maintain its full-year performance guidance and aims to achieve profit targets, with a potential announcement of a new stock buyback plan in February [3] - Efforts to build a more resilient operational structure include integrating older facilities to reduce fixed costs and improve efficiency [3] Group 3: Brand Strategy and Future Outlook - Bridgestone is focusing on revitalizing its classic tire brand Firestone to buffer impacts and enhance market profitability, with sales of Firestone passenger and truck tires increasing since Q2 [4] - The company aims to achieve profitability in its Brazilian operations by the end of the fiscal year, while European operations have shown improvement, with an expected adjusted operating profit margin of 6% to 7% for the next fiscal year [4] - Bridgestone's long-term profit margin target of 15% by 2030 must be based on new realities amid ongoing global policy changes and rapidly evolving market dynamics [4]

Core Insights - The 2024 Global Tire "75 Strong" ranking shows stability in the top positions, with Michelin leading for the sixth consecutive year, followed closely by Bridgestone [2][3] - The tire industry is experiencing a "East rises, West falls" trend, with significant sales growth in Asia, particularly China, while North American and European markets are declining [3][4] - Profitability remains a concern, with a divergence in performance among companies, as the average pre-tax operating profit margin is 10.3%, but net profit margins are under pressure [5][6] Ranking Changes - The top six companies in the 2024 ranking remain unchanged, with Michelin at $25.647 billion, Bridgestone at $24.77 billion, and Goodyear at $17.447 billion [2] - The ranking includes 39 Chinese companies, 9 from India, and a total of 75 companies from various countries, indicating China's significant role in the global tire industry [2] Sales Performance - Global tire sales revenue for 2024 is approximately $181.96 billion, reflecting a modest 8% increase from 2023 [3] - The top six companies experienced collective sales declines, with Michelin down 5.95% and Bridgestone down 5.1%, while companies ranked seventh to tenth saw positive growth [3][4] Regional Distribution - Sales growth is primarily concentrated in Asian countries, with 25 out of 39 Chinese companies reporting increases, contrasting with declines in North America and Europe [4] - The top three companies' combined sales account for 37.3% of global sales, indicating a decrease in industry concentration [4] Profitability Trends - The tire industry shows a mixed profitability landscape, with an average net profit margin of 5%, and 8 out of 15 companies reporting declines in net profit [5][6] - Major companies like Michelin and Bridgestone reported significant drops in net profit, highlighting ongoing challenges in the industry [6]

Investment Rating - The report provides various investment ratings for Japanese automotive companies, including "Overweight" for Toyota Motor, Suzuki Motor, Yamaha Motor, Isuzu Motors, Denso, Aisin, and Nifco, while "Underweight" is assigned to Nissan Motor and SUBARU [5]. Core Insights - The global auto industry is expected to normalize after overcoming COVID-19 and supply chain issues, with a projected growth rate of approximately 2% CAGR from 2024 [20]. - The report highlights the complexity of the Toyota Group structure, indicating increasing cross-shareholdings among its subsidiaries [7]. - Tariff impacts are noted to be minor in the tire sector, but the competitive environment remains challenging [4]. Coverage Universe & Valuation - Nissan Motor: Underweight, Price: ¥355, Target Price: ¥320, Market Cap: ¥1,318.5 billion, FY24E P/E: NM, ROE: -1.2% [5] - Toyota Motor: Overweight, Price: ¥2,624, Target Price: ¥3,600, Market Cap: ¥41,438.1 billion, FY24E P/E: 6.9, ROE: 13.4% [5] - Mitsubishi Motors: Neutral, Price: ¥432, Target Price: ¥360, Market Cap: ¥631.1 billion, FY24E P/E: 15.4, ROE: 3.7% [5] - Mazda Motor: Neutral, Price: ¥894, Target Price: ¥1,000, Market Cap: ¥564.8 billion, FY24E P/E: 4.5, ROE: 7.3% [5] - Honda Motor: Neutral, Price: ¥1,421, Target Price: ¥1,500, Market Cap: ¥7,500.2 billion, FY24E P/E: 6.4, ROE: 7.5% [5] - Suzuki Motor: Overweight, Price: ¥1,787, Target Price: ¥2,300, Market Cap: ¥3,509.7 billion, FY24E P/E: 8.6, ROE: 14.5% [5] - SUBARU: Underweight, Price: ¥2,625, Target Price: ¥2,500, Market Cap: ¥1,923.9 billion, FY24E P/E: 5.5, ROE: 12.9% [5] - Yamaha Motor: Overweight, Price: ¥1,075, Target Price: ¥1,500, Market Cap: ¥1,103.3 billion, FY24E P/E: 9.7, ROE: 13.3% [5] - Isuzu Motors: Overweight, Price: ¥1,924, Target Price: ¥2,600, Market Cap: ¥1,372.5 billion, FY24E P/E: 9.8, ROE: 9.5% [5] - Denso: Overweight, Price: ¥1,897, Target Price: ¥2,300, Market Cap: ¥5,522.1 billion, FY24E P/E: 13.0, ROE: 8.0% [5] - Aisin: Overweight, Price: ¥1,781, Target Price: ¥2,200, Market Cap: ¥1,440.9 billion, FY24E P/E: 13.4, ROE: 5.2% [5] - Bridgestone: Overweight, Price: ¥6,106, Target Price: ¥6,500, Market Cap: ¥4,357.8 billion, FY24E P/E: 14.7, ROE: 8.0% [5] Earnings Forecast Summary - Toyota's revenue for FY24 is projected at ¥45,095.3 billion, with a YoY growth of 21.4% and a net profit of ¥4,944.9 billion [17]. - Honda's revenue for FY24 is projected at ¥20,428.8 billion, with a YoY growth of 20.8% and a net profit of ¥1,107.2 billion [17]. - Nissan's revenue for FY24 is projected at ¥12,685.7 billion, with a YoY growth of 19.7% and a net profit of ¥426.6 billion [17]. - Suzuki's revenue for FY24 is projected at ¥5,374.3 billion, with a YoY growth of 15.8% and a net profit of ¥267.7 billion [17]. - SUBARU's revenue for FY24 is projected at ¥4,702.9 billion, with a YoY growth of 24.6% and a net profit of ¥385.1 billion [17].

Company Overview - Bridgestone Corp. (BRDCY) shares increased by 5.8% to close at $19.22, supported by higher trading volume compared to normal sessions [1] - The stock had previously experienced a 9.2% decline over the past four weeks [1] Market Context - The surge in Bridgestone's stock occurred amid a broader market rebound following Trump's announcement of a 90-day pause in reciprocal tariffs on most countries, excluding China [2] - This market movement was a response to significant declines and concerns that tariff increases could lead to a recession [2] Earnings Expectations - Bridgestone is projected to report quarterly earnings of $0.42 per share, reflecting a year-over-year decrease of 2.3% [2] - Expected revenues for the upcoming quarter are $7.07 billion, down 1.4% from the same quarter last year [2] Earnings Estimate Trends - The consensus EPS estimate for Bridgestone has remained unchanged over the last 30 days, indicating a lack of upward momentum in earnings revisions [4] - Historical data suggests that stock prices typically do not continue to rise without trends in earnings estimate revisions [3][4] Industry Comparison - Bridgestone is part of the Zacks Automotive - Foreign industry, where Nissan Motor Co. (NSANY) also operates [4] - Nissan's stock closed 4.3% higher at $4.57, but has seen a return of -26.4% over the past month [4] - Nissan's consensus EPS estimate for its upcoming report has remained unchanged at -$0.30, representing a significant year-over-year decline of 179% [5]

Group 1 - Bridgestone Corp. is currently outperforming the Auto-Tires-Trucks sector with a year-to-date return of 20.5%, while the sector has lost an average of 23.4% [4] - The Zacks Consensus Estimate for Bridgestone's full-year earnings has increased by 0.6% over the past 90 days, indicating improved analyst sentiment [4] - Bridgestone Corp. holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] Group 2 - Bridgestone belongs to the Automotive - Foreign industry, which has an average year-to-date loss of 5.3%, further highlighting its strong performance [6] - Another stock in the Auto-Tires-Trucks sector, Dana, has a year-to-date return of 13.8% and also holds a Zacks Rank of 2 (Buy) [5] - Dana's consensus EPS estimate has increased by 23.1% over the past three months, reflecting positive analyst sentiment [5]