Sumitomo Bakelite (4203): 4Q: Positive - Strong China/agentic AI demand to boost semi encapsulants

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Sumitomo Bakelite (4203): 4Q: Positive - Strong China/agentic AI demand to boost semi encapsulants

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Sumitomo Bakelite (4203)

4Q: Positive - Strong China/agentic AI

demand to boost semi encapsulants

Maintain Rating: BUY | PO: 6,500 JPY | Price: 5,546 JPY

11 May 2026

Key takeaways Equity

• FY3/27 guidance came in well above our forecast, leaving a positive impression

Niima Komura >>

• Strong China/AI power-related demand, coupled with the proliferation of agentic AI,to Research Analyst

BofAS Japan

drive further expansion in encapsulants niima.komura@bofa.com

• We maintain our Buy rating, supported by a strong business outlook and increasing Takashi Enomoto >>

exposure to the AI domain ResearchBofAS JapanAnalyst

takashi.enomoto@bofa.com

Results date: May 11 (Mon) 11:30

Results briefing: May 11 (Mon) 15:00-16:30 Stock Data

Price 5,546 JPY

Positive: Strong China/AI power and agentic AI demand to Price Objective 6,500 JPY

drive further expansion in semi encapsulants Date Established 8-May-2026

Investment Opinion B-1-7

Company guidance for FY3/27 operating profit is ¥38.0bn, significantly above our

52-Week Range 3,398-6,063 JPY

forecast of ¥33.8bn, leaving a positive impression. Semiconductor encapsulation

Market Value (mn) 489,434 JPY

materials demand remains robust, particularly in China and AI power-related

Market Value ($mn) 3,125 USD

applications. In addition, the proliferation of agentic AI is expected to drive incremental

Shares Outstanding (mn) 88.2

demand for conventional DRAM/NAND-related encapsulation materials.

Average Daily Value ($mn) 15.3 USD

Sumitomo Bakelite’s product mix is skewed toward mid- to high-end applications, which Free Float 85.5%

should limit the impact from device production cuts stemming from memory shortages.