Good Morning Japan |Beta BACK-Ahead of CPI; Citizen Watch LEADS=>Massive Buyback; Toyota EV Shift?

Global Automotive Stocks/EV Focus/Event Driven, SC Capital

SC Capital

Global Automotive Stocks/EV Focus/Event Driven

Over 22 years covering Japanese equities on both the sell side and the buy side. 

Bottom-up Japan Equities Research

Equity Bottom-Up

<ul>
<li>Toyota's Q2 EPS undershot estimates by 28%. FY3/23 guidance was kept flat, but given a more favorable assumption for forex tailwinds, Toyota effectively lowered FY3/23 EPS by 7%.  </li>
<li>Management partially admitted to parts of recent media reports that Toyota was overhauling its EV strategy.  Targets of 3.5m BEVs by 2030 are unchanged, but the ramp may be slower.</li>
<li>Toyota's 2H FY3/23 hurdles are low and its auto division's operating profits appear to be bottoming. Stock may still be a laggard, but we're bullish on a 12-month basis. </li>
</ul>


Toyota's Q2 EPS undershot estimates by 28%. FY3/23 guidance was kept flat, but given a more favorable assumption for forex tailwinds, Toyota effectively lowered FY3/23 EPS by 7%.  
Management partially admitted to parts of recent media reports that Toyota was overhauling its EV strategy.  Targets of 3.5m BEVs by 2030 are unchanged, but the ramp may be slower.
Toyota's 2H FY3/23 hurdles are low and its auto division's operating profits appear to be bottoming. Stock may still be a laggard, but we're bullish on a 12-month basis. 


Toyota's Q2 Is a Huge Miss; EV Strategy in Flux

Toyota Motor

Toyota's Q2 Is a Huge Miss; EV Strategy in Flux