汽车零部件-海外投资者交流核心议题-Auto Parts-Key Discussions in Our Meetings With Overseas Investors

Summary of Key Points from the Conference Call Industry Overview - Tire Industry: Positive sentiment due to steady replacement demand and growth in large-diameter tire sales. [2] - Auto Parts Industry: Cautious outlook due to declining new car production and completion of price pass-throughs to OEMs. [3] Company-Specific Insights Tire Industry - TOYO: High expectations for the expansion of high-performance tire sales and aggressive share buybacks. The stock outperformed in 2025, with potential for P/B re-rating based on ROE improvement. [2] - Bridgestone: Focus on cost improvements from restructuring and demand for mining tires. Comparisons with Michelin were discussed, indicating a competitive landscape. [2][9] Auto Parts Industry - Nifco: Plans for further share buybacks under a mid-term plan starting in F3/27 and sales expansion to Chinese OEMs. [3] - Koito: Expected earnings improvement through streamlining operations and enhancing lamp added value. [3] - Toyoda Gosei: Rated Overweight (OW) with investor interest in airbag growth and market share gains. Target P/E is set at 11.0x, slightly above the industry benchmark of 10.0x. [9][10] Investor Sentiment - Investors showed less interest in Tires compared to Japanese and Asian investors, but remained positive about stable earnings driven by solid replacement demand and a shift to larger tires. [9] - Interest in business restructuring within the Toyota group was noted, particularly regarding Nifco and Koito Mfg. [9] Risks and Opportunities - Upside Risks for Toyoda Gosei: Recovery in Toyota sales and production, expansion of airbag sales beyond Toyota, and growth in the eRubber business. [12] - Downside Risks: Competition for orders with overseas competitors and declining sales of sedan models. [12] Valuation Methodology - Toyoda Gosei's target P/E is based on expected competitive standing in the passive safety space and market share growth in the medium term. [10] Conclusion - The overall sentiment in the Tire industry is attractive, while the Auto Parts industry is viewed as in-line. There are specific growth opportunities and risks associated with key players in both sectors. [6][9]