Suzuki Motor Earnings Above Expectations

Suzuki Motor's FY3/26 earnings beat expectations behind strong SUV sales in Japan and resilient orders in India. Goldman Sachs maintains a Buy rating while slightly lowering the target price to ¥2,600 to account for raw material headwinds and startup costs in FY3/27.

Key Takeaways

• 1.FY3/26 operating profits reached ¥622.9 bn, exceeding both GS estimates and consensus despite a 4.5% year-on-year decline.
• 2.The India business remains robust with no change in orders, and the company plans for a 10% sales increase in the region for FY3/27.
• 3.12-month target price is lowered to ¥2,600 from ¥2,750 due to raw material cost pressure and Indian plant startup costs, but the Buy rating is maintained.

Table of Contents

• Strong results
• No change in current India sales, but monitoring trends
• BUY
• Key Data
• GS Forecast
• Maintain Buy
• Exhibit 1: Lowering our earnings forecasts
• Investment Thesis - Suzuki Motor
• Price Target Risks and Methodology - Suzuki Motor
• Disclosure Appendix

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