Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Nitto Boseki- Nitto(3110.T)Boseki (3110.T)

Low-CTE, low-dielectric specialty glass output growth to keep boosting earnings

PRICE TARGET ¥6,600 OVERWEIGHT THESIS

Our PT is the product of our F3/28 EPS estimate and a P/E of 40x, which references the We expect demand for NE and NER glass

average forward multiple for the stocks we classify as semiconductor materials-related and (low-dielectric glass) to grow in the medium

adds a premium for strong growth potential, based on the high growth potential of glass term, driven by increased demand for high-

cloth used in substrates for high-end semiconductor packages and high-speed communication speed communication network equipment

devicas. accompanying the spread of generative AI.

Similarly, the mid-term growth scenario for

¥27,114 demand for T glass (high-rigidity glass) due

Consensus Price Target Distribution ¥6,600 ¥33,000.00 to the increasing functionality, larger

MS PT formats, and growing volume of

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates semiconductor packages is intact. Conviction

in growth is strengthening as supply

capacity expands ahead.

RISK REWARD CHART

Consensus Rating Distribution

JPY

56% Overweight

44% Equal-weight

¥7,400¥7,400(+61.57%)¥7,400(+61.57%)(+61.57%)

8000 0% Underweight

MS Rating

¥6,600¥6,600(+44.10%)¥6,600(+44.10%)(+44.10%)

6000 Source: Refinitiv, Morgan Stanley Research

¥4,580¥4,580¥4,580 Risk Reward Themes

New Data Era: Positive

View descriptions of Risk Rewards Themes here

¥2,200¥2,200(-51.97%)¥2,200(-51.97%)(-51.97%)

JUN '25 DEC '25 JUN '26 JUN '27

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research

BULL CASE ¥7,400 BASE CASE ¥6,600 BEAR CASE ¥2,200