Q4: Strong Landing vs Weak FY3/27 Guidance, In-Line; New MTP; Buy

研报英文原文证据摘录

Q4: Strong Landing vs Weak FY3/27 Guidance, In-Line; New MTP; Buy

Japan | Basic Materials

OSAKA Titanium Technologies EquityMayResearch14, 2026

FLASH NOTEQ4: Strong Landing vs Weak FY3/27

RATING BUYGuidance, In-Line; New MTP; Buy

PRICE ¥2,508^

Osaka Titanium announced Q4 FY3/26 earnings and its new mid-term

plan today after market close. Actual profits landed above expectations, PRICE TARGET | % TO PT ¥3,300 | +32%

leading to a modest +¥3/share dividend hike. On the other hand, FY3/27 52W HIGH-LOW ¥3,435 - ¥1,371

P/L guidance points to a sharp decline in profits. This was expected as FLOAT (%) | ADV MM (USD) 23.6% | 2,079.30

sponge titanium is priced on an annual basis, and we'd think that FY26 is a MARKET CAP ¥329.8B | $2.1B

transition year. The company is adding capacity, and should benefit when TICKER 5726 JP ^Prior trading day's closing price unless otherwise

S/D tightens. Reiterate Buy. noted.

FY3/26 earnings. Earnings was weak YoY but still ahead of expectations at the margin,

supporting higher shareholder returns. Net sales declined -9.6% YoY to ¥46.9bn, operating

profit fell -45.2% YoY to ¥5.5bn, and net profit dropped sharply -63.7% YoY to ¥2.6bn, reflecting

inventory adjustments in the aerospace supply chain, low domestic sponge demand, and

weaker pricing linked to export formulas. Despite this significant earnings contraction, profits

exceeded the company’s prior internal forecast, which enabled a dividend increase: the year-

end dividend was raised from ¥10 to ¥13 per share, taking the full-year dividend to ¥18 per

share, maintaining a payout policy in the 25-35% range.

FY3/27 guidance. Guidance is clearly weak at the profit level, despite modest top-line

stabilization. The company forecasts revenue of ¥48.0bn (+2.2%), but OP is expected to