Tokai Carbon (5301): Briefing: Brighter outlook for FY12/27

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Tokai Carbon (5301): Briefing: Brighter outlook for FY12/27

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Tokai Carbon (5301)

Briefing: Brighter outlook for FY12/27

Maintain Rating: BUY | PO: 1,500 JPY | Price: 1,338 JPY

14 May 2026

Briefing: Cathode block facilities operating at full capacity Equity

Key points from the briefing held on 14th May at 10:00 are as follows. We view positively

the stronger-than-expected 2H performance, management’s improved outlook for next Takashi Enomoto >>

fiscal year, and a significant enhancement in shareholder-return policy. Research Analyst BofAS Japan

+81 3 6225 8362

1. Special demand for cathode blocks from Middle Eastern aluminum smelters has takashi.enomoto@bofa.com

generated orders exceeding supply capacity in 2026, leading to full utilization of Niima Komura >>

cathode block facilities. Additional special demand exists from other regions, but ResearchBofAS JapanAnalyst

priority is being given to the Middle East. +81 3 6225 7725

niima.komura@bofa.com

2. In other businesses, carbon black demand in the US has improved since April. In 2Q, Kyoji Chiba >>

higher feedstock costs will weigh on earnings due to a two-month lag in price pass- ResearchBofAS JapanAnalyst

through, but performance is expected to improve from 3Q. In fine carbon, sales of +81 3 6225 7189

kyoji.chiba@bofa.com

solid SiC focus rings are strong, and capacity expansion has been initiated. Industrial

furnaces are also showing signs of recovery, supporting expectations for next year.

Graphite electrodes remain weak near-term, but stronger steel demand is likely to

lift utilization rates. Management indicated a brighter outlook for FY12/27 earnings. Stock Data

3. The new shareholder-return policy adopts a target of adjusted DOE of 5% Price 1,338 JPY