Feedback from Follow-up on New Mid-term Plan

Research evidence excerpt

Feedback from Follow-up on New Mid-term Plan

Update

July 20, 2026 10:20 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MShimadzu (7701) | Japan Mie Yamazaki

Equity Analyst

Feedback from Follow-up on Mie.Yamazaki@morganstanleymufg.comKazuo Yoshikawa, CFA +81 3 6836-8899

Kazuo.Yoshikawa@morganstanleymufg.com +81 3 6836-8408

New Mid-term Plan Hidetaka Suzuki

Research Associate

Hidetaka.Suzuki@morganstanleymufg.com +81 3 6836-8402

Key Takeaways

We followed up with Shimadzu on its new mid-term plan (unveiled Jun 4).

We confirmed steps it will take to achieve the plan's KPI targets. In measuring

instruments the main point is likely to be improving margins via price adjustment,

whose effects are likely to take time to establish. Shimadzu (7701.T, 7701 JT)

Precision Instruments | Japan

The move into the semis inspection field via Tescan has potential to boost

Stock Rating Underweight

multiples, but we have the impression of considerable challenges in areas Industry View In-Line

including near-line uptake, and will be watching outcomes as they emerge. Price target ¥3,400

Shr price, close (Jul 17, 2026) ¥4,180

Mkt cap, curr, basic (bn) ¥1,207.6

MTP themes & key measures: The latest mid-term plan (F3/27-29) puts an Avg daily trading value (bn) ¥4.8

emphasis on improving earnings capability. In measuring instruments business, the

firm will continue to put efforts into strengthening its position in the clinical trials

field. By bringing Tescan into the fold, it also aims to extend business in the growing

semiconductors field. In terms of earnings, it expects a pickup in the 2nd half of the

plan. Drivers of improved operating margins in measuring instruments (+3.1ppt vs.

F3/26) are to be expansion of new product sales and price revisions in existing

businesses.