The Point for Japan

Research evidence excerpt

The Point for Japan

Point |

Monday, 03 August 2026

Today's Results | Company | Macro | Fixed Income | FX | Key Rating and Target Price Changes

Today's Results

Renesas Electronics (6723.T) - Q2 results positive - strong outlook for data

center and industrial sectors

Q2 non-GAAP OP reached ¥132.7bn, beating VA consensus of ¥125.4bn by 6%.

Both automotive and IIoT revenues exceeded expectations, while SG&A expenses

came in lower than anticipated. Q3 guidance calls for non-GAAP revenue of

¥430bn and Non-GAAP operating profit of ¥140bn, exceeding VA consensus of

¥418.4bn and ¥132.7bn. By segment, automotive is expected to continue its

moderate recovery, with low single-digit QoQ growth, while infrastructure and

industrial plans call for double-digit QoQ revenue growth, with data center-related

demand ultimately serving as the driver. Management indicated that the impact

from the Kumamoto earthquake would likely remain minor.

Takero Fujiwara

Niterra (5334.T) - Q1 results: Slightly positive. Weak yen benefits central, but

favorable profit progress

April-June (Q1) OP of ¥41.8bn beat consensus (¥36.2bn). Full-year guidance has

not been hiked, but we believe the profit uptrend will be well received. The primary

driver of YoY profit growth in Q1 was a ¥9bn forex gain, but management indicated

at the briefing that 1) spark plug price pass-through is progressing as planned with

no change to the outlook for higher profit levels heading into H2, 2) it expects to

grow its aftermarket share following the bankruptcy of a competitor in North

America, and 3) the outlook for electrostatic chuck growth from FY3/28

unchanged. Assuming exchange rates remain at current levels, we expect a

guidance hike alongside H1 results.

Takayuki Naito