Sumitomo Osaka Cement: Raising our medium-term forecasts for cement and semiconductor-related products

Research evidence excerpt

Sumitomo Osaka Cement: Raising our medium-term forecasts for cement and semiconductor-related products

Global Markets Research

16 June 2026Sumitomo Osaka Cement

5232.T 5232 JP / EQUITY: JAPAN GLASS, CEMENT & CERAMICS

Raising our medium-term forecasts for cement and Rating

Up from Neutral Buysemiconductor-related products

Target price

We forecast sustained sharp operating profit growth through 29/3 on price Increased from 5,400 JPY 7,060

hikes for cement and increased sales of semiconductor products

Closing price JPY 5,804We revise up our profit forecasts for cement and semiconductor-related products, 15 June 2026

raise our rating to Buy

We raise our operating profit forecasts for Sumitomo Osaka Cement, mainly our forecasts Implied upside +21.6%

for 28/3 onwards, to reflect a boost to profits from additional price hikes for cement and

upward revisions to our sales forecasts for semiconductor electrostatic chucks (advanced

materials segment). We raise our target price to ¥7,060, which we obtain by multiplying

our 28/3 EPS forecast by a P/E of around 14x, a 20% discount to the Russell/Nomura Relative performance chart

Large Cap (ex financials) average of 17–18x (narrowed from a 30% discount previously in

view of higher growth prospects for semiconductor-related products), as we find it hard to

envision any growth in demand for cement in Japan over the medium term.

Further cement price hikes put all of the majors now on the same page, raises

likelihood of improved profits

We raise our 27/3 operating profit forecast from ¥14.1bn to ¥14.4bn (up 6% y-y) and our

28/3 forecast from ¥19.0bn to ¥23.0bn (up 60%). We raise our 28/3 forecasts for the

cement segment by ¥2.4bn and for the advanced materials segment by ¥1.6bn. In light of