ASEAN has long been considered one of the global auto markets with the best growth prospects, but expectations have not been met. With China in trouble and ASEAN auto sales lacklustre, Japanese automakers need to review their positioning in Asia. Analyst Julie Boote provides a short-term outlook for the ASEAN auto market, and discusses Japanese assemblers’ options within this context.
While Japan’s automakers have upped their game in the EV space, they remain laggards on the global stage. With the EV markets now in trouble, analyst Julie Boote assesses whether or not the Japanese assemblers have been vindicated in their more cautious approach to electrification.
Honda has been enjoying a strong sales and profit rebound, thanks to near-perfect business conditions. Now, analyst Julie Boote suggests that there is a risk FY24 business results could disappoint as the earnings outlook deteriorates.
As electric vehicles are set to replace combustion engine cars over time, established automakers need to prove they can remain competitive in this new market. In this context, much attention has been given to battery technology, but the creation of an optimal EV auto platform is just as important. Here, the jury is still out, as we are in the early development days. Analyst Julie Boote discusses how the prefect EV platform should look like and where automakers are currently positioned.
This has been an impressive earning season for Japanese automakers, with FY23 Q1 net sales and OP of the seven listed companies all surging by double-digit rates. Analyst Julie Boote takes us through the factors behind the performance and highlights the positives and negatives to consider going forward.
It has been a mixed earning season for Japanese automakers, although most are predicting strong profit growth for FY23. Despite the positive outlook, the market’s reaction has been lukewarm, due to concerns over overoptimism for sales growth and rapidly rising expenses. Analyst Julie Boote explores what the most important share price drivers could be for the seven listed automakers for FY23.
Climate change risk already affects the major automotive issuers we rate; essentially all automotive original equipment manufacturers (OEMs) have made substantial investments as they shift to electric vehicle (EV) production and away from internal combustion engine vehicles. In the near term, our outlook for the sector is neutral, with company credit profiles supported by reasonable profitability, robust liquidity positions, and conservative financial postures. Over the longer term, this EV tr...
Whereas hydrogen fuel cell systems have not had a break-through in the passenger car market, the situation for the commercial vehicle market looks very different: For heavy-duty trucks in particular, FCVs are superior to BEVs when it comes to charging times, payload and driving range. In this report, analyst Julie Boote assesses the outlook for hydrogen fuel cell trucks and explains how the main global participants are positioned.
On February 9, 2023, DBRS Limited (DBRS Morningstar) confirmed Honda Motor Co., Ltd.'s Issuer Rating at A (high), and Honda Canada Finance Inc.'s Senior Unsecured Debentures and Commercial Paper ratings at A (high) and R-1 (middle), respectively. All trends are Stable.
The transition to electrification remains the key focus for the auto industry, with EV sales performances by market and automaker being closely watched by investors. In 2022, China solidified its position as the global EV stronghold, a success that is encouraging its automakers to expand globally. Despite supply disruptions and concerns over falling subsidies and rising prices, the outlook for the EV market remains positive. In this in-depth report, analyst Julie Boote reviews major developments...
Since FY10, Honda (7267 JT) has managed to keep the OPM of its motorcycle division above 10% in most years, proving that it is more profitable to sell two-wheelers than cars (most Japanese auto manufacturers have OPMs in the single-digit range). After consolidated sales hit a record high of 13.2mil units in FY18, demand was hurt first by the Covid-19 pandemic, and then by supply chain disruptions. However, we expect motorcycle sales to continue to increase in the coming years, with OPM remaining...
Julie Boote assesses Honda's prospects of success as it takes on the EV era amid issues of low profitability, multiple calls on its R&D budget, and supply constraints. Noting Honda's low valuations, Julie considers whether these are justified.
The general evaluation of HONDA MOTOR (JP), a company active in the Automobiles industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date April 5, 2022, the closing price was JPY 3,436...
On February 9, 2022, DBRS Limited (DBRS Morningstar) changed the trend on Honda Motor Co., Ltd.’s Issuer Rating to Stable from Negative and confirmed the rating at A (high). Concurrently, DBRS Morningstar changed the trends on Honda Canada Finance Inc.’s Senior Unsecured Debentures and Commercial Paper ratings to Stable from Negative, while confirming the ratings at A (high) and R-1 (middle), respectively.
Over the last two years, global EV sales have accelerated, moving from niche market to mass market. Concerned about rising CO2 levels, national governments are supporting the electrification of private transport, and consumers are increasingly willing to ‘go electric’. Established automakers have drawn up EV and battery strategies, trying to remain key players in this new EV world. In this report, analyst Julie Boote outlines the different paths dedicated EV players and traditional OEMS are tak...
The auto industry has spent the last few years on redefining their powertrain strategies, as electrification has become the key focus of automakers and investors. However, these changes are nothing compared to the upcoming disruption from the emergence of the software-defined car. As the car’s digitalization expands from driving functions and infotainment to connectivity and autonomous drive, the software requirements are increasing exponentially. Against this backdrop, automakers’ decision on ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Small-Caps & Reopening Stocks Remain In Focus Major global indexes (MSCI ACWI, ACWI ex-US, EM, and EAFE) continue to hold above critical support levels and market dynamics remain largely positive. Until this changes, we believe global equities are headed higher in the coming weeks and months. Additionally, we are reiterating our overweight recommendations on small-caps and value as we believe outperformance from these areas is likely to continue. · Risks To Our Positive Outlook. As we ...
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