Ajinomoto‘s incremental ABF upside & key takeaways from today‘s divisional seminar

Research evidence excerpt

Ajinomoto‘s incremental ABF upside & key takeaways from today‘s divisional seminar

30 June 2026

Euan McLeish

+81 3 5962 9611

APAC Food & Beverages euan.mcleish@bernsteinsg.com

Ajinomoto Co Inc Hao Wang, CFA

+852 2123 2627

Rating hao.wang@bernsteinsg.com

Outperform Mufei Gao

Price Target +81 3 6777 6995

mufei.gao@bernsteinsg.com

2802.JP 7,100.00 JPY

Ajinomoto's incremental ABF upside & key takeaways from

today's divisional seminar

Increasing ABF intensity for AI-related CPUs, commercial adoption of AFTINNOVA Magnetic

Close Date 30 Jun 2026

Materials, further space for expansion at the Gunma site, and more clarity around Ajinomoto’s

2802.JP Close Price (JPY) 5,873.00

ability to compete in next generation solutions were among our biggest takeaways from

Price Target (JPY) 7,100.00

today’s ABF Divisional seminar (link). We now see upside to our 34% revenue growth and

Upside/(Downside) 21%

55% BP growth estimates for the Functional Materials division in FY3/27&28 coming from

52-Week Range 6,166.00/3,270.00

CPU demand, and co-packaged optics. We also see a major incremental opportunity for the

JPL 2,608.44

company’s ABF-RCC material to enhance power efficiency and miniaturization in mobile

FYE Mar

phones as increasingly powerful edge computing chips are adopted (see more details here).

Div Yield 0.9%

During today’s session, management also confirmed our view that the company’s key Market Cap (JPY) (B) 5,742.24

moat lies in their tight relationship with the chip designers (in addition to the substrate EV (JPY) (B) 6,191.68

manufacturers), and their resulting access to early stage chip R&D which allows Ajinomoto Performance YTD 1M 6M 12M

to be the first mover in solving emerging technical challenges relating to “electrical power, Absolute (%) 77.1 14.0 77.1 50.2