Ibiden (4062): In line: Raise forecast on stable package substrate ASP trend, Buy, PO ¥17,700

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Ibiden (4062): In line: Raise forecast on stable package substrate ASP trend, Buy, PO ¥17,700

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Ibiden (4062)

In line: Raise forecast on stable package

substrate ASP trend, Buy, PO ¥17,700

Reiterate Rating: BUY | PO: 17,700 JPY | Price: 15,655 JPY

11 May 2026

Raise PO sharply: ¥10,300 → ¥17,700 Equity

We raise Ibiden’s earnings forecasts as shown in Exhibit 2, and increase our price

objective (PO) significantly from ¥10,300 to ¥17,700. Our PO is based on a P/E of 37x

our FY3/29 EPS estimate. We believe that the current share price reflects profit Key Changes

contribution from the Gama plant, where production of package substrates for ASICs is (¥) Previous Current

scheduled to ramp up from 2H FY3/28 onward, and therefore change the base year for Price Obj. 10,300 17,700

valuation from FY3/28 to FY3/29. We also raise the applied multiple from 34x previously 2027E Rev (m) 506,600 511,000

(the upper end during past earnings expansion phases) to a level that includes a premium 2028E Rev (m) 601,700 610,000

of around 10% as an AI-related name. 2029E Rev (m) NA 753,100

2027E EPS 212.4 228.1

CPU pkg substrate margin improvement, ASIC contribution 2028E EPS 302.9 333.3

Our key investment theses are (1) continued strength in core GPU package substrates, 2029E EPS NA 478.6

(2) improvement in profitability of CPU package substrates, and (3) the start of profit 2027E EBITDA (m) 171,800 175,400

contribution from cutting-edge ASIC package substrates from FY3/29 onward. In 2028E EBITDA (m) 223,800 235,600

particular, in our upward revision of earnings forecasts, we reflect stable GPU package 2029E EBITDA (m) NA 323,200

substrate ASP trends and improving profitability of CPU package substrates, which have

been pressured by low utilization. Masashi Kubota >>