Shimadzu (7701): Surprises limited, but solid fundamentals confirmed

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Shimadzu (7701): Surprises limited, but solid fundamentals confirmed

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Shimadzu (7701)

Surprises limited, but solid fundamentals

confirmed

Reiterate Rating: BUY | PO: 5,100 JPY | Price: 4,057 JPY

04 June 2026

FY3/29 OP target of ¥100bn above our expectations Equity

The company held a medium-term guidance briefing after the close on June 4, with

materials released around 11:00. Its quantitative targets, on an IFRS basis for FY3/29, Kei Takeuchi >>

Research Analyst

are revenue of ¥680bn, operating profit of ¥100bn, ROE of at least 11.5%, and ROIC of BofAS Japan

at least 10%. Our IFRS-converted operating profit forecast is around ¥97bn, but we see +81 3 6225 8104 kei.takeuchi@bofa.com

operating profit of ¥100bn as achievable if profitability improvement from price Ritsuo Watanabe >>

increases and a higher recurring revenue ratio, among other factors, materializes. We Research Analyst

estimate the market had expected operating profit of around ¥90-95bn, making the BofAS+81 3 6225Japan6259

targets numerically positive. The company expects its group operating margin to ritsuo.watanabe@bofa.com

improve from 13.1% in FY3/26 to 14.7% in FY3/29. While there was no surprise, we

view the medium-term guidance as confirming solid fundamentals.

Capital policy and Tescan disclosure were underwhelming Stock Data

The company did not provide the clarification we had expected on its total shareholder Price 4,057 JPY

return ratio, including share buybacks. However, management described ROE of at least Price Objective 5,100 JPY

11.5% and ROIC of at least 10% as minimum targets to be achieved, and indicated that Date Established 26-May-2026

it would conduct flexible share buybacks if needed to meet them. Investment Opinion B-1-7

52-Week Range 3,229-4,540 JPY