Orders Rise Sharply; FY6/26 OP Guidance Lowered

Research evidence excerpt

Orders Rise Sharply; FY6/26 OP Guidance Lowered

Ulvac (6728 JP)

Equity Research

May 12, 2026

The Long View: Ulvac

Investment Thesis Risk/Reward - 12 Month View

• ULVAC has acquired the POR of the EUV metal hard mask process from a

Upside : Downside

major customer for its advanced logic process. The company's customer 22k 2.12 : 1

21k (+94%)

base is also expanding. In addition, based on the results of metal hard 20k

masks, the acquisition process in logic and memory is also increasing. 18k

• In power semiconductors, ULVAC has secured an 80% share of the 16k

Chinese market for ion implanters. Although it has been adjusted 14k 13k (+20%)

12k

recently, it is expected to increase again in the medium term. 10k

• In FPDs, the company is expanding for battery equipment. 8000

• The profit mix has improved due to the expansion of sales in the 6000 6000 (-45%)

semiconductor electronics business, and the company is working to 4000

increase the gross profit margin of the entire company. 2000 2025 2026 +12 mo.

Base Case, Upside Scenario, Downside Scenario,

¥13000, +20% ¥21000, +94% ¥6000, -45%

• Improvement of gross margin by expanding • High-end logic, incorporation of new • Prolonged adjustment of power

sales of semiconductor electronics processes in memory. semiconductors

• Acquisition of new POR in semiconductors • Expansion of ashing equipment in advanced • Decline in profitability due to unprofitable

and expansion of sales due to the expansion packages projects

of customers

• Increase in gross profit margin due to • Downside PT: ¥6,000 (15x ¥400 EPS in risk

• Price target: ¥13,000 (25x FY6/28E EPS of improvement of business mix and progress in case), based on lower EPS and valuation.

¥536.1). planned production system

• Upside PT: ¥21,000 (30x EPS of ¥700).