SCREEN Holdings (7735): 4Q: FY3/27 group earnings plan falls below consensus, but results seen as in line

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SCREEN Holdings (7735): 4Q: FY3/27 group earnings plan falls below consensus, but results seen as in line

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SCREEN Holdings (7735)

4Q: FY3/27 group earnings plan falls below

consensus, but results seen as in line

Reiterate Rating: NEUTRAL | PO: 11,500 JPY | Price: 11,215 JPY

13 May 2026

Investment rating: Reiterate Neutral with ¥11,500 PO Equity

4Q OP beat consensus, while FY3/27 OP guidance was 1% below consensus. However,

the core semiconductor production equipment (SPE) business remains solid; we view the

results as in line. We make only minor estimate revisions and reiterate Neutral with PO Key Changes

of ¥11,500. A more constructive stance would require a stronger conviction in (1) (¥) Previous Current

reacceleration of cleaning equipment share, (2) faster growth in new areas like advanced 2027E Rev (m) 714,298 722,655

packaging, or (3) further upside to SPE margins. 2028E Rev (m) 845,801 848,815

2029E Rev (m) 940,741 944,092

4Q results: OP in line with BofAe, >10% above consensus 2027E EPS 605.2 606.9

4Q OP was ¥45bn (+46% QoQ / +29% YoY), in line with our ¥45bn estimate but above 2028E EPS 822.0 823.9

the VA consensus of ¥41bn. 4Q SPE OP margin reached 30%. The company attributed 2029E EPS 949.1 948.9

the high margin to volume growth and a higher post-sales mix (20% of SPE sales). 2027E EBITDA (m) 168,716 169,116

FY3/27: No concern over group guidance below consensus 2028E2029E EBITDAEBITDA (m)(m) 220,674251,856 221,005251,569

OP guidance is ¥150bn (+22% YoY), slightly below our ¥155bn estimate / the VA 2027E DPS 170 175

consensus ¥154bn. The gap is explained by assumptions for the display business. Core

SPE profit assumptions exceed our estimate/the VA consensus, suggesting limited Mikio Hirakawa >>

downside risk.