Mitsui Chemicals (4183): Briefing: Middle East risks remain a key concern

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Mitsui Chemicals (4183): Briefing: Middle East risks remain a key concern

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Mitsui Chemicals (4183)

Briefing: Middle East risks remain a key

concern

Maintain Rating: UNDERPERFORM | PO: 1,550 JPY | Price: 1,999 JPY

13 May 2026

Briefing (from page 3): New Tafmer facilities suspended Equity

The key points from the briefing are as follows. Concerns remain regarding the outlook

for Tafmer, and a prolonged Middle East situation is viewed as a downside risk to Takashi Enomoto >>

earnings. We maintain a bearish investment stance. Research Analyst BofAS Japan

+81 3 6225 8362

1. In petrochemicals, higher naphtha prices contribute to increased inventory valuation takashi.enomoto@bofa.com

gains at naphtha crackers; however, these gains are offset by higher costs arising Niima Komura >>

from pricing lags in automotive materials. Naphtha cracker utilization is assumed to ResearchBofAS JapanAnalyst

remain below 70%. Naphtha price inflation driven by Middle East tensions is +81 3 6225 7725

niima.komura@bofa.com

expected to normalize in 2H FY3/27.

Kyoji Chiba >>

2. In the Mobility Solutions business, the new Tafmer plant in Singapore entered ResearchBofAS JapanAnalyst

commercial operation in April, but operations have been suspended due to raw +81 3 6225 7189

kyoji.chiba@bofa.com

material procurement issues stemming from Middle East impacts.

3. In FY3/27, lens monomers are seeing strong sales, while profits in agrochemicals

are expected to remain sluggish due to rising raw material and logistics costs. Stock Data

4. Semiconductor materials (pellicles and ICROS tapes) performed well in FY3/26, and Price 1,999 JPY

growth is expected to continue into FY3/27. Price Objective 1,550 JPY

Date Established 6-Apr-2026

Estimates (¥) 3/24A 3/25A 3/26E 3/27E 3/28E