Upward Revision to Profit Guidance

研报英文原文证据摘录

Upward Revision to Profit Guidance

Japan | Capital Goods

THK EquityMayResearch11, 2026

FLASH NOTEUpward Revision to Profit Guidance

1Q26 OP beat the consensus estimate. Mgmt raised its 1H26 and full-year RATING HOLD

OP target to reflect strong incoming orders from the semiconductor and PRICE ¥6,487^

machine tool industry. The magnitude of the upward revision should trigger PRICE TARGET | % TO PT ¥4,200 | -35%

positive market reaction. It claims that its new sales and OP forecasts 52W HIGH-LOW ¥6,487 - ¥3,395

for 2-4Q26 could still be conservative, assuming current order momentum FLOAT (%) | ADV MM (USD) 91.2% | 38.78

continues in the coming quarters. MARKET CAP ¥726.7B | $4.6B

TICKER 6481 JP

1Q26 OP beat the consensus estimates: THK's 1Q26 IFRS-based OP was ¥7.6bn, beating ^Prior trading day's closing price unless otherwise noted.

the consensus estimate of ¥5.2bn. We believe such beat should have come mostly from

better sales volume gains of linear motion guide and actuator products than the market

expectations. Mgmt indicated that besides sales volume growth, it enjoyed profit contribution

from increasing production utilization and the JPY depreciation. Note that THK booked one-off

cost of ¥740mn related to the early retirement program in Japan. THK's 1Q26 OP also included

cost burden of roughly ¥500mn from fixed asset tax. This implies that 1Q26 OP based on THK's

regular operation could have been higher than the reported figure.

Surging orders in 1Q26: The aggregate orders at THK's Japan headquarter and major

overseas subsidiaries in 1Q26 were +62% YoY/+42% QoQ at roughly ¥87bn. Mgmt indicated

that such order growth was mostly driven by the semiconductor industry. Domestic orders

were +51% YoY/+25% QoQ at ¥29.8bn, of which ¥6.7bn (+67%/+24%) from the electronics