As US auto tariffs remain in place, investors need to assess whether auto-related government negotiations will be successful, and what automakers can do to mitigate the potential surge in costs. Analyst Julie Boote reviews potential outcomes.
As the earning season has concluded, investors are taking stock about the auto sector’s FY24 Q2 results and updated guidance numbers. Analyst Julie Boote reviews the key developments in the industry, and how these could affect automakers’ earnings in the second half of the fiscal year.
Given that the EV market is not a free market, led by demand and supply, but a distorted market, moved by political intervention in the form of subsidies (or lack of), making EV sales forecasts is very challenging indeed. This is a headache for analysts, but even more so for auto companies with a ten-year planning horizon. In this report, we outline the sales situation for different regions, as well as providing an outlook based on currently available information.
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.
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.
At the beginning of every year we publish our PSA Perspective, a report intended as a long shelf-life look at the year ahead. This year Pelham Smithers discusses Japan's economy, the outlook for the stock market, and some stand-out themes and developments for the year. These include the digital yen and the demise of live action entertainment in Japan. We also update our noted PSA Focus List of stocks. Table of Contents Overview 3 Background: 4 Japan’s Economic Outlook 5 Ja...
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...
MITSUBISHI MOTORS (JP), a company active in the Automobiles industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date April 1, 2022, the closing price was JPY 321.00 and its potential ...
At the beginning of 2022, automakers anticipated an easing of the supply constraints, with production volumes expected to rise in FY22. However, the Ukrainian / Russian war is threatening to lead to a further disruption of the supply chain. Analyst Julie Boote investigates which raw materials and parts could see further bottlenecks , and how this could affect the Japanese OEMs.
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...
Japan's and Toyota's electrification efforts seem to develop in parallel: the Japanese government is increasingly committing to the creation of a domestic BEV market, and Toyota significantly raised its BEV sales target for 2030. Accordingly, we expect to see strong growth in Japanese BEV sales and a more prominent position for Toyota among global players.
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....
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