Dexerials: F3/27 1Q Results Briefing: Slightly Cautious Tone Near Term; Bullish Long-Term Tone Centered on Photonics Biz

Research evidence excerpt

M

Update

August 5, 2026 06:39 AM GMT

Dexerials (4980) | Japan

Morgan Stanley MUFG Securities Co., Ltd.+

Takato Watabe

Equity Analyst

F3/27 1Q Results Briefing:

Slightly Cautious Tone Near

Term; Bullish Long-Term Tone

Centered on Photonics Biz

Ryoichi Watanabe

Equity Analyst

Kayoko Shoji

Research Associate

Kano Fujita

Research Associate

Neutral impression of the briefing: Following the announcement of F3/27 1Q

results on Aug 4, the company held a results briefing on the afternoon of Aug 5. On

optical semiconductors, the company stated that yields at its new Tome plant in

Miyagi Prefecture have improved, and that shipments of 100G/lane-compatible

Dexerials (4980.T, 4980 JT)

photodiodes (PDs) are increasing steadily. Regarding mass production of 200G/lane-

Electronic Chemicals | Japan

compatible PDs, management commented that production would begin in 2H this

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fiscal year as planned. Meanwhile, in the near term, the company said it is struggling

with procurement due to trouble at a supplier of indium phosphide (InP) substrates,

a raw material for Dexerials. Over the longer term, it said the number of optical links

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¥4,400

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¥4.8

and the market should expand dramatically as the use of optical technologies

expands across a wide range of applications, and noted that it will continue to make

upfront investments. Dexerials said profitability should improve to around the same

level as its existing core businesses (ACF and anti-reflection film) in F3/29, the final

year of the current medium-term plan. Management commented that recovery in

anti-reflection film (used for notebook PC and automotive applications) should

take place from 3Q onward, after declining sharply in 1Q. ACF, demand for which

was strong in 1Q (including for use in high-end smartphones), was said to be tracking

in line with plan for the full fiscal year. We have a neutral impression of the briefing.

The share price corrected after the results announcement, and a full-fledged

recovery in the share price could take some time, in our view.

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