1、 Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules.Refer to Other Important Disclosures for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.BofA Securitie

2、s does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment d

3、ecision.Refer to important disclosures on page 12 to 16.Analyst Certification on page 9.Price Objective Basis/Risk on page 9.12871626 Autos-Asia Pacific Mothersons Japan calling:Honda deals point to larger supply chain shifts Merger Acquisition Divestiture SAMIL:New M&A in Honda supply chain.5-6%EPS

4、 accretion Samvardhana Motherson(SAMIL)announced the acquisition of 81%stake in Yutaka Giken,Japanese auto part maker,majority owned by Honda(70%).Transaction outflow is likely to be US$184M,valuing the listed company at US$225M(cMCap US$300M).Note the company has net cash on BS of US$280M,almost si

5、milar to its current Market Cap.Yutakas main business is Motors/exhaust system components and Honda is its largest OEM customer with 90%of revenue mix.Co.generated revenues of USD 1.2B(FY25)with 8%EBITDAm(3.5-4%EBITm).Transaction valuation seems very lucrative though admittedly part of portfolio is

6、not relevant in EV world.The deal is expected to conclude by Q1F27 post tender offer&Honda stake buyout.Deal is EPS accretive by 5-6%on F27 ests.SAMILs BS with Net Debt/EBITDA at 1.1x&positions it well for more M&As.Japan Calling:A big opportunity in the making?Reit Buy We note that Yutaka is SAMILs