Nakanishi (7716): Strong results raise expectations for a guidance upgrade in 2Q

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Nakanishi (7716): Strong results raise expectations for a guidance upgrade in 2Q

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Nakanishi (7716)

Strong results raise expectations for a

guidance upgrade in 2Q

Maintain Rating: BUY | PO: 3,500 JPY | Price: 2,871 JPY

14 May 2026

Operating profit beats consensus by 34% Equity

The company reported FY12/26 1Q results at 14:00 on the 14th and held a briefing after

the close. 1Q revenue rose 21% YoY and operating profit increased 39% YoY, with Kei Takeuchi >>

Research Analyst

operating profit of ¥4.7bn beating consensus of ¥3.5bn by 34%. It was a strong set of BofAS Japan

results, with all segments exceeding consensus on both revenue and profit. +81 3 6225 8104 kei.takeuchi@bofa.com

While DCI (+28% YoY revenue) and Kiko (+23%) included some temporary factors, Dental Ritsuo Watanabe >>

(+17%) and Surgical (+37%) represented organic growth. Given 1Q operating profit BofAS Japan

progress (62% of 1H guidance; 29% of full-year guidance), there could be scope for a +81 3 6225 6259 ritsuo.watanabe@bofa.com

guidance upgrade in 2Q. In addition, if the outlook for a refund of the majority of the

disclosed FY12/26 US tariffs (¥1.3bn) materializes, it could add roughly 5% upside

versus the operating profit guidance. The stock closed up 7%.

Stock Data

New product launches still in focus Price 2,871 JPY

We view the results as increasing confidence in a return to a sustainable growth phase, Price Objective 3,500 JPY

with solid progress confirmed in Dental and Surgical, which we position as key growth Date Established 22-Apr-2026

drivers. We continue to look for announcements of innovative new products in Surgical. Investment Opinion B-1-7

We maintain Buy, reflecting the growth potential from the twin engines of Dental and 52-Week Range 1,797-2,898 JPY

Surgical.