Investment Rating - The report has Buy ratings on Toyota Industries, Denso, and Suzuki, while Sell ratings are assigned to Honda, Isuzu, and Hino [5][32]. Core Insights - New car prices and cost of ownership remain high, with July US CPI data showing new vehicle prices down 0.1% month-over-month and down 1.1% year-over-year, while used car prices decreased by 1.1% month-over-month and 10.9% year-over-year [3][4]. - The average incentive per vehicle at Honda was $2,728 in July, reflecting a year-over-year increase of $1,089 (up 66%), driven by BEV incentives [4]. - The BEV weighting relative to overall sales increased from 6.5% in March 2024 to 7.8% in July, with Honda leading Japanese OEMs in BEV sales [5]. Summary by Sections Pricing Trends - New vehicle prices remain stable at high levels, with average incentives per unit rising to $3,398, similar to levels seen from 2010 to 2020 [3]. - Auto insurance costs have continued to rise by double digits year-over-year since October 2022, contributing to high vehicle ownership costs [3][10]. BEV Market Dynamics - Honda's BEV incentives are projected to rise to around $10,000, influenced by competitive pricing strategies and the introduction of new models [4]. - The report anticipates ongoing increases in incentives as BEV sales grow, particularly from 2025 onwards [4]. Sales Performance - In July, Honda sold 4,152 BEVs, leading among Japanese manufacturers, followed by Nissan and Toyota [5]. - The report notes that the Civic HEV's sales contribution is expected to align with that of the Accord, with a significant price difference between HEV and ICE versions [4].

Investment Rating - The report assigns a "Buy" rating for the company with a 12-month price target of ¥1,700.0, while the current price is ¥1,374 [6]. Core Insights - The company has shown a better than expected recovery in the China market, with its share of the nursing bottle market increasing from 39% to 44% [3]. - Local currency sales in China rose by 13%, and the company expects to achieve a market share of 50% by the end of FY12/24 [3][4]. - The company anticipates year-on-year growth in sales and operating profit for the second half of the fiscal year [4]. Financial Performance - Q2 operating profit was ¥3.1 billion, a 0.6% increase year-on-year, surpassing forecasts by 7% and consensus by 10% [2]. - Full-year guidance remains unchanged, with expectations of ¥3.2 billion in sales and ¥1.9 billion in operating profit for H2 [4]. - The revenue forecast for FY12/24 is ¥101.2 billion, reflecting a 6.9% year-on-year increase [7]. Market Strategy - The company has increased its advertising and sales promotion expenditures, particularly on e-commerce platforms like Douyin and Redbook, to support sales growth [3][5]. - A new product pipeline for H2 includes childcare appliances in Japan and nursing bottles for older users in China, which are expected to enhance sales [3]. Investor Sentiment - The market reaction to the recovery in the China market share is expected to be positive, with anticipated revenue growth supporting profit growth from FY12/25 [5].

Global Research and Evidence Lab 14 August 2024 Sundrug Earnings update: ongoing growth in sales and profit Action: updating our forecast in light of Q1 results We are updating our forecast following Sundrug's Q1 results release. We only fine-tune our OP forecast and adjust our price target from ¥4,250 to ¥4,190. We maintain our Neutral rating. Investment overview: focus on improvements in Kirindo's enterprise value Sundrug is one of Japan's leading drugstores. The company operates discount stores as well a ...

Kohei Highway #34 Has US BEV bottomed out? CPI news Japan Auto, Auto parts and Auto-tech Kohei Takahashi, Analyst Equity Research, UBS Securities Japan Co., Ltd. TEL: +81-3-5208-6172 E-mail: kohei.takahashi@ubs.com This report has been prepared by UBS Securities Japan Co., ANALYST CERTIFICATION AND REQUIRED DISCLOSURES, including information on the Quantitative Research published by UBS, begin on slide UBS does and seeks to do business with companies covered in its research reports. As a result, investors s ...

Global Research and Evidence Lab 14 August 2024 First Read Medley Profit level comes up short due to growth in costs Q: How did the results compare vs expectations? A: Q2 (April-June) FY12/24 OP (prior to goodwill amortisation adjustments) came in at ¥2.02bn (-1.0% yoy), which is below the IFIS consensus (¥2.68bn) and our forecast (¥2.8bn). The undershoot relative to what we expected was due to one-off factors in the HR platform business and higher company-wide costs. The OP margin in the HR platform busine ...

Investment Rating - The report assigns a 12-month rating of Neutral to Asahi Intecc with a price target of ¥2,220.0 [6][20]. Core Insights - Asahi Intecc's Q4 FY6/24 operating profit was ¥2.5 billion, reflecting a year-on-year increase of 53.8%, although it fell short of the IFIS consensus of ¥2.9 billion [2][7]. - Strong sales in China were a significant factor, with estimates indicating a 3.4 times increase in sales in Q4 compared to the previous year [2][3]. - The FY6/25 operating profit guidance is set at ¥25.2 billion, representing a 13.9% year-on-year growth, which is above the firm's previous forecast and higher than market expectations [4][5]. Summary by Sections Financial Performance - Q4 FY6/24 operating profit was ¥2.5 billion, below consensus but above internal expectations, driven by strong sales in China [2][7]. - FY6/25 operating profit guidance is ¥25.2 billion, higher than previous forecasts and market assumptions [4][5]. Market Outlook - The company anticipates continued strong sales in China for FY6/25, supported by a recovery in case numbers and normal inventory levels [3][5]. - The operating profit margin is expected to improve to 21.6%, an increase of 1 percentage point year-on-year [5]. Company Profile - Asahi Intecc is a mid-sized medical device manufacturer specializing in stainless wire technology, with a strong market presence in Japan and manufacturing operations primarily in Thailand and Vietnam [10].

Global Research and Evidence Lab 14 August 2024 First Read Sundrug Q1 FY3/25 results: OP broadly in line with the company's plan Q: How did the results compare vs expectations? A: Q1 FY3/25 OP came in at ¥10.9bn, up 10% yoy, which is a solid result relative to our forecast of ¥10.5bn and the IBES consensus of ¥10.6bn. The company says OP was broadly in line with its plan. By segment, in the drugstore business, sales came in short and OP undershot management's budget slightly, whereas the discount store busi ...

Global Research and Evidence Lab 15 August 2024 Equities Australia Telecommunications Lucy Huang Analyst lucy.huang@ubs.com +61-2-9324 2253 Ailsa Lei Analyst ailsa.lei@ubs.com. +61-2-9324 3181 Sparsh Polepalle Associate Analyst sparsh.polepalle@ubs.com +61-2-9324 2000 First Read Australian Telecom Sector Optus 1Q25. Mobile ARPUs lift another +$1 QoQ 1Q25 result - key takeaways Singapore Telecom (Singtel), owner of Optus, reported 1Q25 results today. 1. Mobile services rev $1bn; 2. Mobile subs. Ending total ...

Global Research and Evidence Lab 15 August 2024 First Read Magellan Financial Group UBS SnapShot: FY24 Result ONE LINER KEY NUMBERS RESULT HIGHLIGHTS (FY24 unless otherwise stated) GUIDANCE UBS COMMENT CONFERENCE CALL DETAILS Equities Australia Diversified Financial 12-month ratingBuy 12m price target A$10.50 Price (14 Aug 2024) A$9.70 RIC: MFG.AX BBG: MFG AU Trading data and key metrics 52-wk range A$10.42-6.22 Market cap. A$1.80b/US$1.19b Shares o/s 186m (ORD) Free float 26% Avg. daily volume ('000) 603 A ...

ab 15 August 2024 Global Research and Evidence Lab Seven Group Holdings Industrial Services momentum to support HSD EBIT growth in FY25. Buy FY24 EBIT growth delivered above guidance Seven Group delivered a solid FY24 result, with EBIT growth of +20% ahead of guidance for "mid to high teen" percent growth. The Industrial Services segment delivered +28% EBIT growth, with strong operating performances across WesTrac, Coates, and Boral. WesTrac delivered double digit revenue growth in both machine sales and se ...