Toyota supplier Denso targets 11% return on equity by 2030
- 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
TOKYO: 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% 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% targets for ROE and operating margin in its 2025 plan. It forecast an ROE of 8.1% and an operating margin of 7.2% 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% after it unveiled the plan, trimming gains before the statement.
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