Okuma "Maintaining Neutral: Needs to improve profitability through better ..."

Research evidence excerpt

Okuma "Maintaining Neutral: Needs to improve profitability through better ..."

Global Research

4 June 2026ab

Okuma Equities

JapanMaintaining Neutral: Needs to improve

profitability through better marketing Factory Equipment

12-month rating Neutral

12m price target ¥4,340Lowering price target to ¥4,340, maintaining Neutral

Prior : ¥4,690

We are lowering our OP forecasts and our price target from ¥4,690 to ¥4,340. Although

demand is recovering, we believe earnings growth significantly above our forecasts may Price (03 Jun 2026) ¥4,010

be elusive due to increased upfront investment, including personnel costs and RIC: 6103.T BBG: 6103 JP

depreciation. In the context of capital efficiency, we do not view the current share price

as attractive and therefore maintain our Neutral rating. Trading data and key metrics

52-wk range ¥5,100-3,340

Needs to improve profitability Market cap. ¥243b/US$1.52b

The OP margin declined to 6.6% in FY3/26. The main factors were weak sales, higher Shares o/s 60.5m (ORD)

fixed costs due to larger growth investments and higher variable costs caused by Free float 75%

inflation, while price hikes were unable to offset these factors. Looking ahead, we Avg. daily volume ('000) 495

expect earnings expansion to continue over the medium term as demand recovers. Avg. daily value (m) ¥2,063.2

However, as fixed costs are likely to continue increasing due to upfront investment and Common s/h equity (03/27E) ¥255b

profitability improvement will take time amid a shift to high-value-added domains, we P/BV (03/27E) 0.9x

expect margins will be lower than levels seen in previous upcycles. As Okuma Net debt to EBITDA (03/27E) NM

strengthens its 5-axis and multitasking machines and automation-related products, a