Archion Corp Post-Initiation Investor Discussions

Goldman Sachs reiterates a Buy rating on ARCHION following investor discussions regarding merger synergies, domestic recovery, and Indonesian market competition. EPS for FY3/27 is revised upward reflecting a one-off plant sale gain.

Key Takeaways

• 1.Synergy realization from the Hino/Mitsubishi Fuso merger is expected through procurement cost unification and early curb of overlapping R&D.
• 2.Domestic market share for Hino is expected to recover following the resumption of E13C engine production, driving FY3/27 earnings.
• 3.In Indonesia, Archion maintains dominance in logistics and construction segments despite intensifying competition from Chinese manufacturers in mining.

Table of Contents

• Timeline for generating synergies
• Competitiveness in domestic trucks
• Share battle with emerging truck manufacturers in Indonesia
• Impact on stock price from planned unwinding by major shareholders
• ARCHION's P/E looks expensive relative to Isuzu's
• Raising our FY3/27 EPS forecast
• Investment Thesis - ARCHION Corp. (543A.T)
• Price Target Risks and Methodology - ARCHION Corp. (543A.T)

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