Niterra (5334): 2Q results briefing report: Medium-term outlook solid

JPMorgan notes that after Denso cancelled the sale of its exhaust gas sensor business to Niterra, management updated its 2030 medium-term plan (FY2025-29) at the results briefing while maintaining FY2029 targets of ¥1 trillion in sales, ¥285 billion in EBITDA and ¥210 billion in operating profit. The automotive business keeps its ¥700 billion sales target on spark plug share gains, demand overshoot, mix improvement and price hikes to offset inflation, while the component solution business raised its outlook for SPE-related products and hinted at expanding opportunities for solid oxide fuel cells (SOFCs) in data centers. 1H operating profit was in line with guidance, with a ¥16.9 billion hit from material and energy costs partly offset by ¥8.5 billion of cost pass-throughs. The medical business returned to profit and the semiconductor package business grew profit YoY, with full-year SPE sales growth now targeted above 30% versus 25% previously. Management expects the spark plug business