Jun-Q Results: EUV Mask Blanks and HDD Substrates Both Solid

Research evidence excerpt

Jun-Q Results: EUV Mask Blanks and HDD Substrates Both Solid

Update

July 31, 2026 11:14 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MHOYA (7741) | Japan Kazuo Yoshikawa, CFA

Equity Analyst

Jun-Q Results: EUV Mask Blanks Kazuo.Yoshikawa@morganstanleymufg.comMie Yamazaki +81 3 6836-8408

Mie.Yamazaki@morganstanleymufg.com +81 3 6836-8899

and HDD Substrates Both Solid Hidetaka Suzuki

Research Associate

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

AlphaSignals Earnings Reaction

Strengthens our thesis Modest upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

The company indicated a stronger-than-previously-expected HOYA (7741.T, 7741 JT)

Japan Semiconductors | Japan

sales outlook for both EUV mask blanks and 3.5-inch HDD glass Stock Rating Equal-weight

substrates. Industry View In-Line

Price target ¥29,000

Shr price, close (Jul 31, 2026) ¥24,675

Jun-Q results: Non-IFRS profit before tax was ¥82.4bn, above consensus of around Mkt cap, curr, basic (bn) ¥8,399.2

¥80.0bn. This was supported by margin improvement in IT and a refund of US DPS (03/27e) ¥310.0

ROE (03/27e) (%)* 25.1

tariffs, albeit not a large amount. P/BV, basic (03/27e) 7.1

P/E, basic (03/27e)* 32.3

IT: Constant-currency base sales growth by product was 18% for semiconductor

* = GAAP or approximated based on GAAP

mask blanks and photomasks, 15% for HDD substrates, and 11% for optical solutions.

Supported by higher revenue and mix improvement, margin from ordinary operating

activities was 55.1% (QoQ+4.1ppt).

Life Care: Constant-currency base sales growth by product was 4% for eyeglass

lenses, 3% for contact lenses, 9% for intraocular lenses, and -4% for endoscopes.