Earnings growth to accelerate on better MLCC volume and ASP; Buy, PO ¥12,400

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Earnings growth to accelerate on better MLCC volume and ASP; Buy, PO ¥12,400

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Murata Mfg (6981)

Earnings growth to accelerate on better

MLCC volume and ASP; Buy, PO ¥12,400

Reiterate Rating: BUY | PO: 12,400 JPY | Price: 10,530 JPY

Raise PO: ¥6,200 → ¥12,400 16 June 2026

Considering strong demand for multi-layer ceramic capacitors (MLCC) and an outlook for Equity

ASP increases driven by mix improvement, we revise upward our earnings forecasts for

Murata Mfg from FY3/28 onward (FY3/28: ¥511.0bn → ¥566.2bn, FY3/29: ¥608.7bn → Key Changes¥775.4bn). Accordingly, we significantly raise price objective (PO) from ¥6,200 to

¥12,400. The basis for our PO is P/E of 40x our FY3/29 estimate (previously P/E of 30x (¥) Previous Current

on FY3/28). Price Obj. 6,200 12,400

2028E Rev (m) 2,250,100 2,300,900

2029E Rev (m) 2,510,600 2,674,100MLCC drives component business margin to record high

Our sales forecasts for MLCC are ¥1.1tn for FY3/27 (+18% YoY), and ¥1.34tn for FY3/28 2027E EPS 168.1 168.8

(+21% YoY). We revise our FY3/28 average selling price (ASP) assumption from +6% YoY 2028E EPS 204.1 227.0

previously to +9% YoY. As a result, our FY3/28 sales forecast rose from 1.28tn. We 2029E EPS 242.6 308.4

forecast a CAGR of 21% in MLCC sales over the next five years. Driven by MLCC, we see 2028E EBITDA (m) 704,100 759,300

the component business profitability surpassing the previous record high of 35.6% in 2029E EBITDA (m) 816,300 983,000

FY3/22. For AI server MLCCs, the likelihood is increasing for sales growth of around 80%

to 90% YoY over the next several years. We expect EPS to reach a 35% CAGR over the Masashi Kubota >>

Research Analyst

next five years. BofAS Japan

+81 3 6225 7138

Risk is excessive expectations for pricing strategy masashi.kubota@bofa.com