Nichicon: F3/27 1Q Results: Monitoring Sustainability of Strong Earnings Momentum

Research evidence excerpt

M

Update

August 5, 2026 12:31 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Nichicon (6996) | Japan

Sota Harashima

Equity Analyst

F3/27 1Q Results: Monitoring

Sustainability of Strong

Earnings Momentum

AlphaSignals Earnings Reaction

Shoji Sato

Equity Analyst

Nichicon (6996.T, 6996 JT)

Unchanged

Meaningful upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Electronic Components | Japan

Stock Rating

Industry View

Price target

Shr price, close (Aug 5, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Equal-weight

In-Line

¥4,700

¥3,280

¥224.0

¥1.5

1Q OP of ¥2.8bn greatly exceeded our forecast and the market consensus.

OP upside vs. our forecast was primarily driven by strong NECST earnings.

F3/27 full-year guidance was left unchanged, but we got the sense the firm's

conviction had increased.

We view likely key points as earnings growth potential of aluminum electrolytic

capacitors for AI servers/autos and sustainability of strong NECST earnings.

1Q results: OP came to ¥2.8bn (+¥2.1bn YoY; our forecast: ¥1.7bn, FactSet

consensus: ¥1.5bn), including ¥1.5bn in capacitors (+¥0.9bn; our forecast: ¥1.3bn)

and ¥1.3bn for NECST (+¥1.3bn YoY; our forecast: ¥0.4bn). We believe the

significant profit overshoot vs. our forecast in the NECST business was the result of

higher-than-expected sales of applied equipment (including for defense) and

household energy storage systems.

F3/27 guidance: Guidance was kept at sales of ¥185bn (incl. capacitors: ¥112bn,

NECST: ¥73bn), and OP of ¥8.7bn. Based on its projections for demand to fully ramp

up for aluminum electrolytic capacitors for GPU server power sources in 2H, we got

the sense the firm's conviction in attaining guidance has increased.

Our take: Given the significant 1Q beat vs. our forecasts and the consensus, we

envisage minor positive implications for shares. Through follow-up meetings and

other channels, we will look to confirm the pace of earnings growth in high addedvalue aluminum electrolytic capacitors for AI servers and automotive applications,

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