TOKYO OHKA KOGYO (4186): 2Q FY2026 results: No surprises, but favorable growth confirmed

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

07 August 2026

TOKYO OHKA KOGYO (4186)

2Q FY2026 results: No surprises, but favorable growth

confirmed

Neutral: Tokyo Ohka Kogyo (TOK) reported 2Q (Apr–Jun) FY2026 results on

August 6 at 14:00 JST and held a briefing after the market close. We have a neutral

impression of both results and the briefing, as TOK had revised its 1H operating

profit estimate and FY2026 guidance on July 30. TOK confirmed longer-term

growth potential for advanced semiconductor photoresist and back-end process

materials.

Earnings trends: 2Q operating profit fell by ¥1.3 billion QoQ to ¥13.7 billion.

Higher sales added ¥1.8 billion to profit, and the weak yen and price

adjustments added ¥1.0 billion, but these were not enough to offset the ¥4.1

billion negative impact of higher costs, including a roughly ¥2 billion increase

in raw material costs. TOK guides for 2H operating profit to rise by ¥3 billion

HoH. Key factors are sales and product mix changes +¥8.1 billion, forex

changes and price adjustments +¥0.6 billion, costs more than −¥3 billion (e.g.,

higher personnel costs and depreciation), and raw materials −¥2.5 billion.

Product trends: TOK raised EUV photoresist sales guidance from +20% to

+50% YoY on a ramping up of shipments for HBM applications adopted in 2H

2025. It raised KrF photoresist sales guidance from +10% to +20% on growth

for memory applications in Japan and South Korea. For back-end process

materials, TOK guides for high growth of 68% YoY in 2H (1H +25% YoY;

FY2026 guidance +45% YoY) on an increase in the number of advanced

package processes that use these materials at manufacturers in Taiwan. It also

forecasts growth for thinners ahead of the launch of new plants in Japan, US,

and South Korea, and plans to accelerate the startup of the Pyeongtaek Plant

in South Korea by six months. TOK has high expectations for wafer handling

systems used in the production of silicon interposers, forecasting high growth

of 700% from 2024 to 2027.

Overweight

4186.T, 4186 JP

Price (06 Aug 26):¥8,910

Price Target (Dec-26):¥12,500

Japan Equity Research

Chemical, Steel

Yasuhiro Nakada AC

(81-3) 6736-8692

JPMorgan Securities Japan Co., Ltd.