Japan Equity Research May 26, 2025 Auto/Auto Parts/Tire Sector Head of Japan Equity Research Japan: Auto / Auto Parts / Tires Akira Kishimoto AC 813-6736-8646 akira.x.kishimoto@jpmorgan.com JPMorgan Securities Japan Co., Ltd. See the end pages of this presentation for analyst certification and important disclosures, including non-US analyst disclosures. J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a co ...

Group 1: Company Performance - Aeva Technologies, Inc. has gained approximately 258.5% year-to-date, significantly outperforming the average loss of 9.7% in the Auto-Tires-Trucks sector [4] - The Zacks Consensus Estimate for Aeva's full-year earnings has increased by 20.7% over the past 90 days, indicating improved analyst sentiment [4] - Aeva Technologies, Inc. holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] Group 2: Industry Comparison - Aeva Technologies, Inc. belongs to the Automotive - Original Equipment industry, which has seen an average gain of 2% this year, indicating that AEVA is performing better than its industry peers [6] - In contrast, Bridgestone Corp., which is part of the Automotive - Foreign industry, has a year-to-date return of 23.7%, while its industry has declined by 2.3% [5][6] - The Auto-Tires-Trucks sector currently ranks 14 out of 16 in the Zacks Sector Rank, reflecting a relatively weaker performance compared to other sectors [2]

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]

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Bridgestone Corp. (BRDCY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question. Bridgestone Corp. is a member of the Auto-Tires-Trucks sec ...

Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Has Bridgestone Corp. (BRDCY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.Bridgestone Corp. is a member of the Auto-Tires-Trucks sector. This group includes 100 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector ...

A small position in Bridgestone Corporation ( OTCPK:BRDCY ) ( OTCPK:BRDCF ) may be warranted in your investment portfolio. Bridgestone is a dominant player in the global tire market, with a long-standing reputation for producing high-quality, premium tires. The company is well positioned inTailwind value investor with Chemical Engineering background including BS, MS, and PhD degrees. My investing style is to apply a mix of fundamental valuation and technical analysis. I'm attracted to companies in the techn ...

Financial Data and Key Metrics Changes - The company achieved a year-on-year increase in revenue to approximately JPY4.4 trillion and adjusted operating profit of approximately JPY480 billion, with an adjusted operating profit margin of 10.9% [4][43] - Net income from continuing operations was JPY295 billion, with ROIC at 8.2% and ROE at 8.1%, both below the previous year's levels [4][44] - For 2025, the company expects revenue of JPY4.370 trillion, up 2% year-on-year, and adjusted operating profit of JPY505 billion, an increase of 11% [52][27] Business Line Data and Key Metrics Changes - The North American business saw increases in both revenue and profit, aided by favorable currency exchange rates, despite a decline in unit sales of passenger car and light truck tires [7][46] - The premium tire business maintained an adjusted operating profit margin of 14%, while the diversified products business faced significant profit declines due to lower demand [14][48] - Latin America experienced a decrease in revenue and profit, landing in the red, particularly in Brazil, where measures against low-end imports were insufficient [10][11] Market Data and Key Metrics Changes - The company reported improved profitability in Asia Pacific, India, and Europe, while profitability in Japan and the Americas decreased [45] - In Europe, the premium tire business saw increased revenue and profit, particularly in the passenger car replacement segment [11][12] - The mining tire business continued to perform strongly, with significant profit increases in both mining and aircraft tire solutions [13][48] Company Strategy and Development Direction - The company has positioned 2025 as "The year of Emergency and Crisis Management," focusing on rebuilding and enhancing business quality while pursuing growth [6][16] - Strategic initiatives include optimizing business footprints, enhancing premium focus, and improving cost structures to support profitability [9][22] - The company aims to strengthen its presence in growth markets such as the US, India, and commercial B2B solutions [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed a strong sense of urgency regarding declining earning power and capital efficiency, emphasizing the need for a robust business quality [7][16] - The company anticipates a challenging business environment in 2025 but remains committed to solidifying its defense and implementing offensive initiatives [40][41] - Management highlighted the importance of adapting to external factors, including potential tariffs and market conditions, while maintaining a focus on premium products [30][79] Other Important Information - The company plans to conduct a share buyback of up to 75 million shares at a cost of JPY300 billion, with a target equity ratio of 55% over the medium term [36][37] - The dividend payout ratio is set to increase to 50%, with a planned minimum dividend of JPY230 for 2025, up from JPY210 in 2024 [38][61] - The company is committed to sustainability initiatives, including carbon neutrality and responsible resource management [35] Q&A Session Summary Question: Current Business Environment and Regional Outlook - Management acknowledged the ongoing severe business environment but noted improvements in North America, particularly in the truck and bus tire segment [66][71] - The company is optimistic about the future of the consumer tire market, especially with the revitalization of the Firestone brand [75][76] Question: Financial Plans and Tariff Implications - Management discussed the anticipated increase in selling prices and the impact of feedstock costs, emphasizing a disciplined approach to pricing [68][80] - The uncertainty surrounding import tariffs was acknowledged, with plans in place to mitigate potential impacts [70][79] Question: Rebuilding Resources and Future Targets - The company plans to invest JPY100 billion in rebuilding efforts, primarily related to the closure of the LaVergne plant, with a focus on achieving a 10% ROIC by 2026 [92][94] - Management expressed confidence in reaching adjusted operating margin targets of 12% to 13% by 2026 through improved business quality [95][96] Question: Long-term Business Management and Growth Aspirations - Management emphasized the importance of growth with quality and improving capital efficiency as foundational objectives [113][116] - The company remains committed to enhancing its B2C operations while maintaining a strong focus on B2B solutions [120][121]

Investors looking for stocks in the Automotive - Foreign sector might want to consider either Bridgestone Corp. (BRDCY) or Li Auto Inc. Sponsored ADR (LI) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate ...

Dublin, Jan. 15, 2025 (GLOBE NEWSWIRE) -- The "Port and Industrial Tires - Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.The global market for Port and Industrial Tires was estimated at US$8.8 Billion in 2023 and is projected to reach US$11.2 Billion by 2030, growing at a CAGR of 3.6% from 2023 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The growth in ...

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