Shin-Etsu Chem (4063): Results First Impressions: Negative

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Shin-Etsu Chem (4063): Results First Impressions: Negative

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Shin-Etsu Chem (4063)

Results First Impressions: Negative

Reiterate Rating: BUY | PO: 9,400 JPY | Price: 6,702 JPY

24 July 2026

Key takeaways Equity

• Company guidance of ¥700bn OP and a ¥116 dividend missed both our estimate and

Takashi Enomoto >>

consensus expectations. Research Analyst

BofAS Japan

• Initial 1Q guidance has broadly matched actual results over the past three years, takashi.enomoto@bofa.com

making the weak outlook negative. Niima Komura >>

Research Analyst

• 1Q results were largely in line, but focus will be on semiconductor materials pricing BofAS Japan

and the earnings outlook. niima.komura@bofa.com

Kyoji Chiba >>

Results Date: July 24 15:30, Analyst Meeting: July 24 BofASkyoji.chiba@bofa.comJapan

16:30~

Negative Stock Data

1Q OP of ¥173.8bn was broadly in line with our estimate of ¥172.0bn and the consensus Price 6,702 JPY

of ¥171.2bn. Electronic Materials (actual ¥101.9bn vs. our estimate ¥91.0bn) exceeded Price Objective 9,400 JPY

expectations, while Infrastructure Materials (¥34.8bn vs. ¥46.0bn) fell short. Functional Date Established 8-Jul-2026

Materials (¥28.8bn vs. ¥28.0bn) was largely in line with expectations. Investment Opinion B-1-7

52-Week Range 4,280-7,953 JPY

The company announced FY guidance of ¥700.0bn OP (vs. our pre-result estimate of

¥780.0bn) and a dividend of ¥116/share (vs. ¥126/share). The guidance assumes an Market Value (mn) 14,479,895 JPY

Market Value ($mn) 88,327 USD

exchange rate of around ¥160/US$ from July onward. The company's outlook is below

Shares Outstanding (mn) 2160.5

both our forecast and the consensus (¥762.6bn OP). Over the past three years, initial

Average Daily Value ($mn) 293.5 USD