Nippon Chemi-Con (6997) Medium-term plan briefing: Sales plan for FY2026 seems overly bullish despite expectations for AI-related growth

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Nippon Chemi-Con (6997) Medium-term plan briefing: Sales plan for FY2026 seems overly bullish despite expectations for AI-related growth

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Nippon Chemi-Con (6997)

Medium-term plan briefing: Sales plan for FY2026 Underweight

seems overly bullish despite expectations for AI-related 6997.T, 6997 JP

growth Price (21 May 26):¥2,923

Price Target (Dec-26):¥1,260

Nippon Chemi-Con held a results briefing from 10:30 a.m. on May 9 (JST). The Japan Equity Research

company also provided additional explanations about the medium-term plan

Technology - Electronic

unveiled in April, including the AI-related sales outlook, cost structure reforms, Components

and initiatives to lower the breakeven point. The company plans to expand in AC Akinori Kanemoto

aluminum electrolytic capacitors for AI servers over the medium term and aims to

(81-3) 6736 8628

improve profitability by lowering marginal profitability, reducing fixed costs akinori.kanemoto@jpmorgan.com

through overseas production transfers, and other measures. We will closely Ikki Shibata

monitor future developments. However, we maintain our view that FY2026 sales (81-3) 6736 8641

guidance is overly bullish and downside risk persists. Key takeaways are as ikki.shibata@jpmorgan.com

follows. JPMorgan Securities Japan Co., Ltd.

• AI server-related sales outlook: The company targets AI server-related sales

of ¥11.5 billion in FY2025 (with board-mounted long-L products accounting

for 60%), ¥20.5 billion in FY2026 (over 70%), and ¥27.6 billion in FY2028

(over 70%). Nippon Chemi-Con expects its market share for AI servers to

remain around 25% and does not anticipate significant changes going

forward. Management forecasts a CAGR of 94% in demand for board-