Japanese auto parts maker
Denso said on Tuesday it aims for sales of 8 trillion
yen ($50 billion) and a return on equity of 11 per cent by 2030, despite
missing a lower ROE target in an earlier plan.
The Toyota supplier flagged both opportunities and
challenges for future growth in a statement, as changes around
mobility accelerate in areas such as autonomous driving and
software-defined vehicles.
The company also said it would aim for an operating profit
margin of 10% by 2030 and target business investment of 6.6
trillion yen over the five years until then.
In its statement, the company said it fell short of the 10 per cent
targets for ROE and operating margin in its 2025 plan. It
forecast an ROE of 8.1 per cent and an operating margin of 7.2 per cent in
fiscal 2026, which begins in April.
Denso made a bid for chipmaker Rohm this month,
looking to strengthen its grip on power management chips used in
electric vehicles and data centres.
It will target 8 trillion yen or more in investment and
shareholder returns over the fiscal years from 2027 to 2031
period, it added.
These include categories such as business investment,
dividends of 1 trillion yen and an unspecified amount for
strategic investments and share repurchases.
Denso’s shares were up 0.8 per cent after it unveiled the plan,
trimming gains before the statement.