Mitsui Chemicals (4183): Raise PO; semiconductor tailwinds offset by petrochemical headwinds

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Mitsui Chemicals (4183): Raise PO; semiconductor tailwinds offset by petrochemical headwinds

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Mitsui Chemicals (4183)

Raise PO; semiconductor tailwinds offset

by petrochemical headwinds

Reiterate Rating: UNDERPERFORM | PO: 1,800 JPY | Price: 2,121 JPY

02 July 2026

Raise PO to ¥1,800 from ¥1,550; reiterate Underperform Equity

We raise our price objective (PO) to ¥1,800 from ¥1,550, reflecting improved prospects

for semiconductor materials and a higher valuation applied to the semiconductor

materials business, which accounts for roughly 15% of company-wide OP. We now apply Key Changes

a FY3/28 P/E of 14.0x, vs. 10.5x previously. We reiterate our Underperform rating. While (¥) Previous Current

dividend yield support remains, we continue to estimate earnings below consensus, Price Obj. 1,550 1,800

reflecting weakness in petrochemicals and automotive materials. 2027E Rev (m) 1,787,200 1,799,800

2028E Rev (m) 1,767,800 1,840,200

Lift estimates on semiconductor materials 2029E Rev (m) 1,760,100 1,870,000

We raise our core OP estimates, reflecting improved prospects for ICROS tape and 2027E EPS 132.27 111.38

pellicles, as well as better profitability in automotive materials driven by lower raw 2028E EPS 146.34 127.68

material costs. We lift our FY3/27E core OP to ¥102bn from ¥95bn and our FY3/28E to 2029E EPS 157.60 141.27

¥114bn from ¥110bn. We estimate 1Q core OP of ¥36bn, supported by a larger 2027E EBITDA (m) 205,000 226,000

inventory valuation benefit in petrochemicals. However, we expect guidance to remain 2028E EBITDA (m) 225,000 246,000

unchanged due to an anticipated slowdown from 2Q onward, and we do not expect any 2029E EBITDA (m) 238,000 259,000

material earnings surprise from the results announcement.