Mitsui Chemicals "Looking into the Ultradent acquisition: a detailed report..."

研报英文原文证据摘录

Mitsui Chemicals "Looking into the Ultradent acquisition: a detailed report..."

hening efforts to promote competing alternatives. As a result, whether Kulzer

03/28E 149.2 188.5

can successfully market attractive products through Ultradent's direct-sales organization

03/29E 176.3 232.4

will be key. The US dental materials market is very competitive, with manufacturers such

as Dentsply Sirona, Envista, and Solventum, as well as distributors led by Henry Schein Shunta Omura

and including Patterson Dental and Benco Dental. In this context, it remains unclear to Analyst

what extent uptake of Kulzer products can be driven solely through Ultradent's sales shunta.omura@ubs.com

network. Given the substantial premium paid for the acquisition, we think the company +81-3-5208 6244

will need to provide clear evidence of progress in expanding sales of Kulzer products.

Management also assumes potential synergies from improving Ultradent's proprietary

whitening trays (made from polypropylene). However, both experts agreed that the

financial impact of such benefits is likely to be limited.

Valuation: Looks stretched in light of the multiple risks

Our price target of ¥1,790 is based on applying a target PER of 12X to our forward 12-

month rolling average adjusted EPS estimate of ¥150. This reflects a discount to the 16X

multiple for the TOPIX 33 Chemicals sector. Given the substantial risk of a slowdown in

earnings momentum from Q2 FY3/27, we believe the shares appear modestly

overvalued. We expect near-term positives to be exhausted by the prospective booking

of high levels of profit in the Q1 earnings release. Given that the acquisition of Ultradent

is scheduled to be completed in September 2026, it is not currently factored into our

forecasts.