Raise PT to ¥5,500 and Rating to Buy

Research evidence excerpt

Raise PT to ¥5,500 and Rating to Buy

Ushio (6925 JP)

Equity Research

June 30, 2026

The Long View: Ushio

Investment Thesis Risk/Reward - 12 Month View

The company has a stable position in the equipment business and light

Upside : Downside

source business. After bottoming out in FY20, it is on a recovery trend, 9000 1.98 : 1

partly due to the effects of structural reforms. However, amid major 8000 8000 (+84%)

changes in the business environment, such as a slowdown in investment

by major customers in lithography equipment for package substrates,

which is Ushio's main business, the company announced new growth 6000 5500 (+26%)

strategy, Revive Vision 2030, in May 2024. Ushio have established a growth 5000

strategy that emphasizes management efficiency, concentrating resources 4000

on growth areas and promoting improvement of capital efficiency. Ushio 3000

2500 (-43%)

are also conducting a large-scale share buyback in FY23-26. 2000

2025 2026 +12 mo.

Base Case, Upside Scenario, Downside Scenario,

¥5500, +26% ¥8000, +84% ¥2500, -43%

• Improving profitability by leveraging • Launch of the digital lithography business that • Intensifying competition in package substrate

unprofitable businesses and narrowing Ushio is promoting with AMAT and contribute lithography equipment and direct imaging

resources to growth areas to business results equipment

• Moderate recovery in demand for packaging • Recovery in demand for packaging substrate • Adjustments due to macro impact in the

substrate lithography equipment and direct- lithography equipment and expansion of Cinema business

to-text imaging equipment customer base through the introduction of

• Stock price in the downside scenario is ¥2,500

next-generation products

• Price target is ¥5,500 (FY3/29E PER 26x) (FY3/29E PER 15x)