27/3 Q1 results: Recovery in EVs in Europe constitutes tailwind for battery materials: Quick Note

Research evidence excerpt

27/3 Q1 results: Recovery in EVs in Europe constitutes tailwind for battery materials: Quick Note

Global Markets Research

29 July 2026Zeon

4205.T 4205 JP / EQUITY: JAPAN CHEMICALS & TEXTILES

27/3 Q1 results: Recovery in EVs in Europe Rating Neutralconstitutes tailwind for battery materials

Target price JPY 2,560Quick Note

Closing price

29 July 2026 JPY 2,254.0First impression slightly positive: Company retains full-year guidance, but Q1

profits beat consensus forecasts (Note: Quick Note reports are not a

Zeon released 27/3 Q1 results at 11:30 JST on 29 July and held a briefing from 15:00. vehicle for changes to ratings, target

Operating profits rose 35% y-y to ¥16.3bn, beating the 29 July QUICK consensus of prices, or earnings forecasts)

¥11.0bn and our forecast of ¥10.2bn. Nevertheless, the company retained its 27/3

operating profit guidance of ¥38.0bn versus the QUICK consensus forecast of ¥39.2bn

and our forecast of ¥38.7bn.

Q1 operating profits beat our forecasts by ¥3.3bn at the specialty materials segment and Research Analysts

by ¥2.5bn at the elastomer segment. The specialty materials segment benefited not only Japan chemicals & textiles

from strong shipments of battery materials for the European EV market, but also from one- Shu Kanbe, CFA - NSC

time reversals of around ¥2.1bn of optical film inventory-related costs. Spreads at the shu.kanbe@nomura.com

elastomer segment widened by more than we had expected thanks to low-priced +81 3 6703 1214

inventories and successful moves to pass on cost increases caused by the conflict in the Daiki Ban - NSC

Middle East. daiki.ban@nomura.com

+81 3 6703 1124

The company may have retained its full-year guidance, but profits were higher than the

market consensus even discounting for one-time factors, on which basis our first