Core Viewpoint - Nissan reported a net loss of 115.76 billion yen for Q1 of FY2025, a significant shift from profit to loss, with a profit margin of -2.9% [1] - The company is implementing the Re:Nissan plan to improve financial performance and aims for a sustainable and profitable future [1][2] Financial Performance - Nissan's consolidated operating loss was 79.1 billion yen, better than the forecasted 200 billion yen [1] - Global sales reached 707,000 units, with consolidated net revenue of 2.7 trillion yen [1] - For the upcoming second quarter, Nissan expects a net sales forecast of 5.5 trillion yen and a loss of 180 billion yen, indicating no improvement in sales or profits compared to Q1 [2] Cost Reduction and Financial Strategy - The company has saved over 30 billion yen in the first quarter through cost-cutting measures [3] - Nissan has a total liquidity of 3.1 trillion yen, including 2.1 trillion yen in cash and cash equivalents, and 1 trillion yen in outstanding loans from its sales finance company [2] Product and Market Strategy - Nissan is focusing on launching competitive new models, with the N7 model showing strong sales performance in China [5] - The number of new energy models has increased from 8 to 10, with the Nissan brand increasing from 5 to 9 [6] - The N7 model, developed by the local team, has achieved significant sales milestones, indicating its appeal to younger consumers [7] Global Expansion and Strategic Initiatives - Nissan plans to utilize China's technology and cost advantages in multiple global markets, with the N7 and Frontier Pro PHEV as key strategic models [8] - The Re:Nissan revival strategy is making progress, with a focus on enhancing global product lines through local partnerships and exports [8]

Investment Rating - The report maintains an "Underperform" rating for Nissan Motor Co Ltd with a price target of ¥250.00 [1][7][39] Core Insights - Nissan's Q1 profits may appear better than guidance, but the path to a turnaround is expected to be challenging due to structural headwinds and the impact of US tariffs [1][10][14] - The company has lowered its operating profit forecast for FY3/26 to JPY -160 billion, reflecting a more conservative perspective on the impact of US tariffs [2][13] - The Re:Nissan recovery plan aims to achieve positive operating profit and free cash flow by FY3/27 through cost reductions and refining market strategies [12][39] Financial Performance - For FY3/25, Nissan reported sales of JPY 12,633 billion, operating profit of JPY 70 billion, and a net profit of JPY -671 billion, with operating profit falling short of guidance by 18% [11] - The forecast for global retail volume in FY3/26 is 3.161 million units, a decrease of 5.5% year-over-year, with a significant impact expected from US import tariffs [2][13] - The company anticipates an operating loss of JPY -200 billion for Q1, attributed to reduced shipment volumes and increased unprofitable fleet sales [3][14] Strategic Initiatives - The Re:Nissan plan includes reducing variable and fixed costs by JPY 250 billion each by FY3/27, consolidating vehicle plants, and reducing the workforce by 20,000 employees by FY3/28 [12][39] - Nissan aims to redefine its market and product strategy, focusing on key markets and models, while reinforcing partnerships with Renault and MMC [12][39] Market Context - Nissan has faced a 40% drop in global sales volume over the past five years due to intensified competition in core markets [17][18] - The company continues to lose market share in the US, China, and ASEAN regions, indicating a structural issue that needs addressing [20][22][24]