Niterra (5334): Earnings model update: Stable earnings growth in spark plugs, accelerating growth in SPE-related components

Research evidence excerpt

Niterra (5334): Earnings model update: Stable earnings growth in spark plugs, accelerating growth in SPE-related components

J P M O R G A N Asia Pacific Equity Research

14 July 2026

Niterra (5334)

Earnings model update: Stable earnings growth in Overweight

spark plugs, accelerating growth in SPE-related 5334.T, 5334 JP

components Price (14 Jul 26):¥10,000

▲Price Target (Dec-27):¥13,300

Prior (Dec-26):¥9,100

We raise our price target to ¥13,300 from ¥9,100, extending the time horizon to

December 2027 (from Dec 2026), and maintain our Overweight rating. In setting Japan Equity Research

our price target, we also factor in ¥2,500/share, which we calculate as the per-share Technology - Electronic

value (after tax) of Niterra’s stake in Toshiba. We base this on the per-share value Components

of the Toshiba stock that Niterra owns through TB Investment Limited Partnership AC Akinori Kanemoto

and JPMorgan’s ¥155,000 price target for Kioxia HD (Toshiba owns 16%) (81-3) 6736 8628

(covered by Jay Kwon and Mio Shikanai) (¥1,500 based on Kioxia’s Jul 13 share akinori.kanemoto@jpmorgan.com

price). In terms of fundamentals, while we lower our operating profit estimates for Ikki Shibata

the Auto-related segments(vs prior estimates) due to soaring raw materials prices, (81-3) 6736 8641

segment profits for spark plug continue to trend higher, and we think there is further ikki.shibata@jpmorgan.com

upside potential for our estimates if Niterra brings forward price revisions for JPMorgan Securities Japan Co., Ltd.

aftermarket products. We increase our earnings forecasts for the component

solutions segment, as we foresee significant earnings growth for SPE components, Key Changes (FYE Mar)

driven by accelerating growth in WFE for logic chip manufacturing. We are also Prev Cur Δ