Nittobo (3110) 1Q results: Special glass remains firm; overshoot due mainly to price revisions for general-purpose products

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

Nittobo (3110)

1Q results: Special glass remains firm; overshoot due

mainly to price revisions for general-purpose products

Somewhat positive: 1Q operating profit of ¥7.9 billion (+85% YoY; Bloomberg

consensus estimate: ¥6.5 billion; our estimate: ¥6.5 billion) beat market

expectations, but the overshoot was likely ¥0.5–1.0 billion without one-time

factors. Electronic materials operating profit of ¥7 billion was in line with our

estimate of ¥6.9 billion, while other business segments were all slightly above our

estimates. Nittobo raised FY2026 guidance from ¥26 billion to ¥30 billion (+44%

YoY; ¥28.4 billion; ¥29.7 billion), but forecasts 2H profit to fall HoH. This is

primarily due to higher raw material and fuel costs, higher depreciation, and a

stronger yen; demand trends are unchanged. Pricing and production capacity

strategies are also unchanged.

1Q results: Nittobo reported 1Q sales of ¥34 billion (+21% YoY, +11% QoQ)

and operating profit of ¥7.9 billion (+85% YoY, +35% QoQ). We believe onetime accounting factors boosted operating profit by ¥0.5–1.0 billion.

Electronic materials operating profit was ¥7 billion (+70% YoY, +26% QoQ;

our estimate: ¥6.9 billion), driving overall growth, but profits also increased

YoY and QoQ in other business segments. Compared with our estimates,

insulation materials had an especially large overshoot on progress in revising

prices (operating profit was ¥250 million versus our estimate for a loss of ¥200

million). In electronic materials, foundation strengthening costs increased (+

¥1 billion) on continued capacity expansion, but segment trends remain firm

on strong demand for special glass (thick and thin T-glass, NE-glass, and NERglass).

Outlook: Nittobo raised FY2026 sales guidance from ¥137 billion to ¥141

billion (+19% YoY; Bloomberg consensus estimate: ¥139 billion; our estimate:

¥141.4 billion) and operating profit guidance from ¥26 billion to ¥30 billion

(+44% YoY; ¥28.4 billion; ¥29.7 billion). Operating profit guidance breaks

down as 51% in 1H and 49% in 2H, with Nittobo expecting 2H sales to grow

HoH but profit to decline.…