Toto (5332.T) Ceramics business briefing

Research evidence excerpt

Toto (5332.T) Ceramics business briefing

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25 Jun 2026 07:48:07 ET │ 10 pages

Toto (5332.T)

Ceramics business briefing

CITI’S TAKE

On June 25, Toto held a ceramics business briefing. Director Ryosuke

Buy Hayashi, head of the business, delivered a presentation and Q&A session.

Price (25 Jun 26 15:30) ¥8,868.0 We view the stock price implications as neutral. Since the company held a

briefing for this business just three months ago, we believe there was no Target price ¥7,900.0

new material that would significantly change our outlook. Expected share price return -10.9%

Expected dividend yield 1.4%

Customer diversification — Current development resources are stretched by Expected total return -9.6%

responding to existing customer requests, and we do not expect customer expansion Market Cap ¥1,458,044M

in the near term. While customer concentration poses risks, strong demand from

US$9,024Mcustomers demonstrates their confidence in Toto. Sales to Chinese SPE

manufacturers continue from relationships established at business inception rather

than via new customer development. While China’s data center investment

expansion is positive, the company does not disclose a breakdown for its China sales.

Masashi Miki, CFAAC

Replacement cycle — Toto targets electrostatic chuck replacement cycles of a year +81-3-6776-4665

or more. Even with cryogenic etching advancement, the firm is not expecting masashi.miki@citi.com

significantly extended lifespans due to the continued progress with a shift to high

power.

Profit margins — We expect profit margins to decline slightly from current levels due

to upfront investments and equipment price increases.

Price hikes — The firm says it will not raise prices on existing products themselves.