Nichicon (6996) 1Q results: Strong start, driven by robust capacitors and significant NECST overshoot

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

05 August 2026

Nichicon (6996)

1Q results: Strong start, driven by robust capacitors and

significant NECST overshoot

Positive: 1Q FY2026 operating profit significantly exceeded our forecast and the

Bloomberg consensus estimate. In capacitors, operating profit was slightly above

our estimate, while NECST came in well ahead. For 2Q, we expect growth in

aluminum electrolytic capacitors for AI servers, higher sales of film capacitors for

xEVs, and continued strength in the energy storage and applied products

businesses., and thus expect a sharp overshoot versus full-year guidance. Although

NECST demand in 1Q tends to be seasonally weak, results were supported by sharp

QoQ growth in energy storage system sales and strong performance of high-margin

products in the applied products business.

Earnings: 1Q sales came in at ¥44.71 billion and operating profit at ¥2.84

billion, with operating profit well above our estimate of ¥1.60 billion and the

Bloomberg consensus estimate of ¥1.52 billion. Guidance was left unchanged,

but we see a high likelihood of an overshoot. 1Q operating profit of ¥2.84

billion represents 33% progress versus full-year guidance of ¥8.7 billion.

In the capacitor business, 1Q sales of aluminum electrolytic capacitors were

slightly below our forecast, but large aluminum electrolytic capacitors for AI

servers were strong. In addition, power equipment capacitors were strong

despite typical seasonality, exceeding our forecast. For operating profit,

aluminum electrolytic capacitors remained firm and were slightly above our

estimate. xEV film capacitors fell short of our forecast and profitability

deteriorated, but profitability of power equipment capacitors was better than

we had expected. In NECST, 1Q sales of energy storage systems significantly

exceeded our forecast and increased QoQ despite typical seasonality. Sales of

switching power supplies also exceeded our estimate. In the applied products

business, sales were in line with our forecast, but operating profit significantly

exceeded our estimate owing to mix improvement, including an increase in

high-margin defense-related products.…