F3/27 1Q Results: Record Earnings to Continue

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M

Update

July 31, 2026 04:20 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

Niterra (5334) | Japan

Shoji Sato

Equity Analyst

F3/27 1Q Results: Record

Earnings to Continue

Sota Harashima

Equity Analyst

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

Niterra (5334.T, 5334 JT)

Electronic Components | Japan

Key Takeaways

1Q OP hit a quarterly record high. If FX stays near 1Q levels from 2Q, further

earnings growth is likely as price pass-throughs for material costs progress.

Stock Rating

Industry View

Price target

Shr price, close (Jul 31, 2026)

Mkt cap, curr, basic (bn)

Avg daily trading value (bn)

Overweight

In-Line

¥12,600

¥9,415

¥1,847.8

¥6.4

SPE electrostatic chuck business incurred opportunity losses in 1Q due to

material procurement constraints, but management expects improvement from

2Q onward.

We expect F3/27 OP to reach a sixth straight record, with record earnings and

high FCF continuing beyond F3/28.

1Q results: OP was ¥41.8bn (our forecast ¥39.6bn, FactSet consensus ¥34.8bn), up

¥8.2bn YoY and ¥14.5bn QoQ. YoY profit growth included ¥9.0bn in FX benefit,

while QoQ growth reflected the absence of ¥13.0bn of one-off costs incurred in 4Q.

F3/27 guidance: Niterra maintained full-year OP target of ¥150.0bn (our forecast

¥158.2bn, consensus ¥155.7bn). The company plans to recover ¥15-16bn of higher

raw material costs (including iridium & platinum) through pricing over the full year,

versus only ¥2.0bn recovered in 1Q, in line with plan. If FX remains around 1Q levels,

there appears to be substantial upside to guidance as price pass-throughs for higher

material costs progress from 2Q onward.

Our view: High-margin automotive spark plugs & exhaust gas sensors should

continue to grow steadily. In SPE electrostatic chucks, where earnings temporarily

declined in 1Q, sales growth is likely from Japanese customers from the end of F3/27

in addition to existing North American customers. We expect F3/27 OP to reach a

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