Announcement of HDD Suspension Production Capacity Adds in Thailand

Research evidence excerpt

Announcement of HDD Suspension Production Capacity Adds in Thailand

Update

July 16, 2026 09:53 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MNHK Spring (5991) | Japan Shinji Kakiuchi

Equity Analyst

Announcement of HDD Shinji.Kakiuchi@morganstanleymufg.comHayato Takashima +81 3 6836-5416

Hayato.Takashima@morganstanleymufg.com +81 3 6836-5414

Suspension Production Capacity

Adds in Thailand

Key Takeaways NHK Spring (5991.T, 5991 JT)

NHK Spring has announced additions to suspension production capacity in Auto Parts | Japan

Thailand to meet rising demand for high-capacity HDDs. It plans to complete the Stock Rating Overweight

Industry View In-Line

new building in Dec 2027. We see positive implications for the share price. Price target ¥4,400

Shr price, close (Jul 16, 2026) ¥3,654

It is already investing to boost capacity for F3/27-28, but the latest Mkt cap, curr, basic (bn) ¥740.3

announcement speaks of an increased probability of demand growth from F3/29. Avg daily trading value (bn) ¥2.3

The plan is to consolidate and streamline visual inspection processes in the new

building. Together with use of the existing building, we understand output

capacity is to rise by a maximum of 1.6x.

Investment in the new building will be ~¥15bn, and the firm also plans ~¥20bn in

spending on additions to plant in the existing one.

Increased capex is expected to come with higher depreciation, but we think it will

be possible to reflect the rise in costs in prices to customers.

On Jul 16 (Thu), NHK Spring announced it will build a new production building at its

Wellgrow Plant in Thailand, where it produces suspensions for HDDs, saying that

against a backdrop of widening demand for AI-related apps and data centers, it

expects demand to increase in the market for high-capacity HDDs.