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.
Mazda’s profits surged in FY24 Q1 on the back of currency gains, with the sharp rise in incentives surprising markets. Analyst Julie Boote examines Mazda’s incentives policy and whether the rising trend is likely to remain in place.
Mazda Motor has been enjoying a three-year recovery run, set to culminate in record sales and profits in FY23. While the automaker managed to improve its quality of sales and increase its profit margins, the next challenge will be tackling the transition to electrification and developing software. With market conditions deteriorating and expenses set to rise, Mazda is now facing a phase of consolidation.
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.
Over the last two years, Mazda engineered an impressive turnaround, on the back of upmarket model launches, lower incentives and cost improvement efforts. While the automaker should continue to benefit from its successful rebranding strategy in FY23, it will increasingly have to deal with longer-term challenges, such as the EV transition. Analyst Julie Boote evaluates Mazda’s chances and risks.
MAZDA MOTOR (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 5, 2022, the closing price was JPY 903.00 and its potential was es...
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
Mazda has successfully implemented its strategic reform plan, improving its brand value, lower its selling incentives and raising prices. In a next phase, the launch of a new premium model line-up should help Mazda to solidify its newly established position as an upscale brand. Analyst Julie Boote investigates the chances of success within an increasingly challenging market environment.
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....
As Julie Boote explains in this report, Mazda presents an intriguing opportunity in the auto sector. Interest in the stock is rising rapidly, as hopes for the end of the Covid crisis - triggered by vaccine news - gives 'Covid-loser' Mazda substantial rebound potential. Fundamentals are improving, too, as things start to look up in the key US market. In the medium-term, risks include the lack of EV exposure.
Mazda shares have fallen 75% over the last five years. Given its expanding model line-up, new powertrains and architectures and its far-reaching collaborative tie-up with Toyota, Julie Boote thinks the stock will be worth considering as a recovery play once Covid-19 concerns abate.
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