Towa: F3/26 Results Follow-up: Demand Recently Strong, but WLP Sales Initiative & New Product Development to Squeeze Profits Near Term

研报英文原文证据摘录

Towa: F3/26 Results Follow-up: Demand Recently Strong, but WLP Sales Initiative & New Product Development to Squeeze Profits Near Term

Update

May 12, 2026 04:52 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MTowa (6315) | Japan Yoshihito Hasegawa

Equity Analyst

F3/26 Results Follow-up: Yoshihito.Hasegawa@morganstanleymufg.com +81 3 6836-8910

Towa (6315.T, 6315 JP)

Mid Small Cap/Manufacturer | JapanDemand Recently Strong, but

Stock Rating Equal-weight

Industry View In-Line

Price target ¥2,600WLP Sales Initiative & New Shr price, close (May 12, 2026) ¥2,675

Mkt cap, curr, basic (bn) ¥200.7

Avg daily trading value (bn) ¥10.4Product Development to

Squeeze Profits Near Term

Key Takeaways

4Q orders of ¥14.9bn (3Q ¥19.6bn) fell given a lack of one-off orders and

reversal from 3Q's frontloaded orders (which sought to attain Towa's reduced

F3/26 target).

F3/26 results: Sales ¥54.36bn (guidance cut at 3Q results: ¥54.5bn; initial

guidance: ¥56.0bn), OP ¥6.91bn (¥7.0bn; ¥9.8bn)

F3/27 guidance: Sales ¥64.0bn (+18% YoY), OP ¥10.24bn (+48%); these assume

quarterly orders of ¥15.0bn to ¥17.0bn and sales of ¥16.0bn.

AI and data center-related capex should continue to drive growth, with mass

production of PLP for advanced packaging expected to begin. WLP sales initiative

will squeeze margins, but Towa aims to improve via the top line.

The new INNOMS system under the fourth molding revolution achieves a 50%

reduction in mass production costs (by saving on space and using fewer

consumables), and also targets replacement demand from transfer-type

equipment.

We met with the company on May 12. Despite a lack of visibility on the outlook

during 2H, order inquiries have been strong of late. Lead times from order to

shipment appear to have lengthened from 3-4 months to around 6 months.