02 October 2015 Asia Pacific/Japan Equity Research Auto Parts & Equipment (Auto Parts (Japan)) / MARKET WEIGHT Aisin Seiki (7259 / 7259 JP) Rating OUTPERFORM* Price (01 Oct 15, ¥) 4,155 THEME Target price (¥) (from 6,200) 5,600¹ Chg to TP (%) 34.8 Market cap. (¥ bn) 1,174.24 (US$ 9.77) Essential reading: Toward newer heights and a Enterprise value (¥ bn) 1,327.29 Number of shares (mn) 282.61 leaner structure Free float (%) 50.0 52-week price range 5,810 - 3,505 Medium-term scenario fueled by organic growth and group reorganization *Stock ratings are relative to the coverage universe in each ■ Aisin Seiki once again our top pick: We lower our target price from ¥6,200 to analyst's or each team's respective sector. ¹Target price is for 12 months. ¥5,600 (potential return 34.8%) but reiterate our OUTPERFORM rating. We continue to recommend Aisin Seiki as our top pick in the auto parts sector, as we Research Analysts expect the company to transform into a true major supplier with a leaner Masahiro Akita structure, aiming for new heights. 81 3 4550 7361
[email protected] ■ Revisiting fundamentals, catalysts and medium-term growth prospects: The shares have not performed well recently, reflecting various external factors. Koji Takahashi 81 3 4550 7884 However, as near-term concerns now appear priced into the shares, we
[email protected] recommend a fresh look at the company’s fundamentals, catalysts and medium- term growth potential. Aisin Seiki looks primed for unprecedented topline highs, driven by organic growth, particularly in conventional automatic transmissions (ATs).