Nitto Denko (6988): 2026 briefing: Ample growth drivers including semis, but lacking surprise

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Nitto Denko (6988): 2026 briefing: Ample growth drivers including semis, but lacking surprise

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Nitto Denko (6988)

2026 briefing: Ample growth drivers

including semis, but lacking surprise

Maintain Rating: BUY | PO: 3,700 JPY | Price: 2,991 JPY

29 May 2026

Medium- to long-term profit plan broadly in line Equity

Nitto Denko held its 2026 company briefing on Friday, May 29. The newly announced

medium- to long-term targets are operating profit (OP) of ¥220bn for FY3/29 with a Masashi Kubota >>

20% OP margin, implying 7% annual growth over the next three years. The company also Research Analyst BofAS Japan

targets OP of more than ¥240bn in FY3/31, with an OP margin of more than 20%. Our +81 3 6225 7138

OP forecast is ¥227.3bn for FY3/29 with an OP margin of 19.6%, and ¥255.5bn for masashi.kubota@bofa.com

FY3/31. There are no surprises in the company’s medium-term profit plan. As the HazelResearchXueAnalyst>>

valuation appears discounted, we maintain our Buy rating, but we find it difficult to BofAS Japan

hazel.xue@bofa.com

identify near-term share price catalysts from the briefing.

Growth drivers are ample, but focus appears dispersed

Pprofit growth drivers highlighted by Nitto Denko this time are (1) semiconductor Stock Data

substrates and package materials, (2) films for smart glasses lenses and FPC, (3) OCA

Price 2,991 JPY

film for foldable devices, (4) automotive displays, and (5) CISFLEX for HDD. Among

Price Objective 3,700 JPY

these, semiconductor-related, including semiconductor process materials within

Date Established 8-May-2026

industrial tape, is attracting attention as a new business. However, there was no mention

Investment Opinion B-1-7

of specific applications, and it is difficult to assess growth potential at this stage. Early