F3/27 1Q Results: Positive Effects Out of Middle East

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M

Update

July 31, 2026 03:27 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Maxell (6810) | Japan

Mie Yamazaki

Equity Analyst

F3/27 1Q Results: Positive

Effects Out of Middle East

AlphaSignals Earnings Reaction

Maxell (6810.T, 6810 JT)

Unchanged

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

Key Takeaways

Precision Instruments | Japan

Stock Rating

Industry View

Price target

Shr price, close (Jul 31, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Equal-weight

In-Line

¥2,200

¥2,070

¥76.3

¥0.4

1Q OP of ¥2.9bn (+45% YoY) beat our ¥1.7bn forecast and the ¥1.8bn consensus.

Vs. our forecasts: FX boost & price pass-through materialized earlier; we expected

a negative Middle East earnings impact, but Functional Materials earnings were

lifted.

Exhibit 1 : Results Highlights

(JPY mn)

Total sales

15,246

MS e

Apr-Jun

IFIS

anr-Jun

34,200

34,920

12,500

Jul-Sep

2Q(E)

35,200

Oct-Dec

3Q(E)

34,800

Jan-Mar

4Q(E)

36,935

13,500

13,100

MS e

F3/27

IFIS

F3/27

CE

F3/27

143,900

143,500

143,000

11,354

52,900

Functional Materials

9,596

8,500

8,600

8,700

8,104

34,800

Optics & Systems

9,206

8,700

8,500

8,000

11,594

37,100

Value Co-Creation

3,617

4,500

4,600

5,000

5,883

19,100

24.4%

13.0%

2.4%

10.0%

11.5%

11.2%

10.9%

10.5%

28.5%

28.7%

24.8%

Energy

F3/27 OP guidance was kept intact as the firm expects customer inventory build-

F3/27

Apr-Jun

1Q

37,665

53,000

34,700

35,700

19,600

YoY(%)

up demand in Functional Materials to subside in 2H.

Positive. Continuing special demand is a potential factor for upside this F3/27, and

price hike effects are tracking ahead of our expectations.

Total sales

Energy

47.3%

-0.6%

24.6%

Functional Materials

22.5%

8.5%

9.1%

4.6%

-5.6%

6.7%

Optics & Systems

17.4%

11.0%

-28.3%

-2.3%

35.9%

1.9%

Value Co-Creation

-14.9%

5.9%

10.9%

0.8%

28.2%

6.4%

9.2%

2,872

1,700

1,750

2,400

2,700

2,128

10,000

9,786

10,000

758

600

OP

YoY) thanks to the materialization of price pass-through effects and the weaker yen.

…