Raising our PT to ¥5,000, focus on future earnings expansion

Research evidence excerpt

Raising our PT to ¥5,000, focus on future earnings expansion

Japan | Precision Equipment

Ushio EquityJuneResearch18, 2026

TARGET | ESTIMATE CHANGERaising our PT to ¥5,000, focus on future

RATING HOLDearnings expansion

PRICE ¥4,711^

We hosted a small meeting with President Asahi on May 17. President

Asahi explained that “USHIO has taken the actions so it can transform the PRICE TARGET | % TO PT ¥5,000 (¥3,500) | +6%

business portfolio and solidify the foundation for improving profitability.” He 52W HIGH-LOW ¥4,732 - ¥1,691

also commented that “development aimed at future growth is advancing, FLOAT (%) | ADV MM (USD) 65.0% | 15.55

and demand for mainstay substrates and package boards is recovering MARKET CAP ¥435.8B | $2.7B

too.” We update our outlook and raise our price target to ¥5,000. We TICKER 6925 JP ^Prior trading day's closing price unless otherwise

maintain our Hold rating. noted.

We added FY3/29 forecasts to our outlook this time. We project ¥25.0bn in FY3/29 OP based FY (Mar) CHANGE TO JEFe JEF vs CONS

on the prospect of DLT ramp-up and recruitment of EMIB-T demand. We raise our price target 2026 2027 2026 2027

to ¥5,000 using our FY3/29 EPS estimate and a 26x fair multiple. We maintain our Hold rating REV NA NA NA NA

because the current share price already factors in future earnings expansion to some extent.

EPS <-1% NA +22% +22%

Nevertheless, we see even larger DLT and EMIB-T potential and believe there is substantial

upside for earnings and the share price once visibility improves.

2026 (¥) Q1 Q2 Q3 Q4 FY3

Below we review content from the meeting. EPS -- -- -- -- 110.80

PREV 111.80

Progress with Phase I of the new growth strategy: USHIO is currently implementing Phase

I of the new growth strategy that covers FY3/25 through FY3/27. Since FY3/25, its mainstay