MARUWA (5344.T): Trends in line with our view that AI-related growth to accelerate from 2H on market expansion and capacity increases; maintain OP estimates/TP; Buy

First-page research excerpt

Equity Research

29 July 2026 | 9:21PM JST

MARUWA (5344.T)

Trends in line with our view that AI-related growth to accelerate from 2H on market

expansion and capacity increases; maintain OP estimates/TP; Buy

5344.T

12m Price Target: ¥89,000

Price: ¥48,870

Upside: 82.1%

MARUWA reported 1Q3/27 operating profits of ¥6.3 bn during July

29 trading, missing our estimate of ¥7 bn. Full-FY3/27 operating

profit guidance was raised to ¥33.7 bn (from ¥29.7 bn, with the

forex assumption changed to ¥158/US$ from ¥153/US$; our

previous estimate was ¥35 bn). For details by business, please refer

to our First Take report (LINK). Key points from our impressions and

investor feedback are as follows. (1) While the miss of consensus for

1Q operating profits looks negative at first glance, we are upbeat

about yield issues having already been resolved on the production

front in 1Q, and inventory of low-margin AI-related products was

almost entirely exhausted in 1Q. (2) New operating profit guidance

looks somewhat conservative, considering the potential for

semiconductor and AI applications to top targets. We expect

full-year operating profits to beat guidance on the back of upside in

AI and semiconductor applications, contribution margins on which

are high. (3) The company presented no new factors to drive up

consensus. New guidance was reassuring in that it confirmed that

market expectations are not out of proportion given current

conditions, but some market participants commented that even

including the upside potential for semiconductors, it is broadly

within the scope of expectations. (4) While the majority held a

positive view that earnings are progressing in line with market

expectations, some commented that they could not find catalysts

strong enough to counter the worsening share price sentiment on

tech/hardware stocks. Meanwhile, several investors expressed

expectations for a recovery in the company’s valuation when stock

picking based on fundamentals (such as operating profit growth

rates) goes into full swing.

BUY

Mitsuhiro Icho

Goldman Sachs Japan Co., Ltd.

Daiki Takayama

Goldman Sachs Japan Co., Ltd.

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