27/3 Q1 results: Tape performs well, but information fine materials weak

Research evidence excerpt

27/3 Q1 results: Tape performs well, but information fine materials weak

Global Markets Research

28 July 2026Nitto Denko

6988.T 6988 JP / EQUITY: JAPAN CHEMICALS & TEXTILES

27/3 Q1 results: Tape performs well, but Rating Neutralinformation fine materials weak

Target price JPY 3,400Quick Note

Closing price

28 July 2026 JPY 3,446First impression in line: Company raises profit guidance, but in line with our

forecasts ex forex effects (Note: Quick Note reports are not a

Nitto Denko released 27/3 Q1 results and held a briefing after the close of trading on 28 vehicle for changes to ratings, target

July. prices, or earnings forecasts)

Q1 operating profits of ¥49.2bn beat our forecast of ¥43.5bn, including ¥16.3bn at the

industrial tape segment versus our forecast of ¥11.5bn. Aside from benefits from the

weaker yen, sales of electrical release tape and semi-conductive process materials were

strong. The company said there might have been rush demand for other applications Research Analysts

ahead of price hikes. Japan chemicals & textiles

Nitto Denko raised its 27/3 operating profit guidance from ¥193.0bn to ¥200.0bn (having Daiki Ban - NSC

changed its USD/JPY assumption from 153 to 158). This ¥7.0bn upward revision mainly daiki.ban@nomura.com

includes a ¥13.9bn boost from forex and a ¥10.0bn dent from cost increases caused by +81 3 6703 1124

the situation in the Middle East. Excluding forex effects, revised operating profit guidance Shigeki Okazaki - NSC

is on a par with our forecast of ¥195.0bn (assuming USD/JPY of 155), on which basis our shigeki.okazaki@nomura.com

first impression is neutral. +81 3 6703 1170

Weak demand for notebook PC and tablet applications

In the information fine materials business, Q1 sales of polarizing films for IT applications