Management Meeting Takeaways: Confirmed Scenarios for Future Business Growth and Margin Improvement

研报英文原文证据摘录

Management Meeting Takeaways: Confirmed Scenarios for Future Business Growth and Margin Improvement

Update

June 18, 2026 05:30 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MFerrotec (6890) | Japan Yoshihito Hasegawa

Equity Analyst

Management Meeting Yoshihito.Hasegawa@morganstanleymufg.com +81 3 6836-8910

Takeaways: Confirmed

Scenarios for Future Business

Ferrotec (6890.T, 6890 JP)

Mid Small Cap/Manufacturer | Japan

Growth and Margin Stock Rating Overweight

Industry View In-Line

Price target ¥13,000Improvement Shr price, close (Jun 17, 2026) ¥9,440

Mkt cap, curr, basic (bn) ¥442.1

Avg daily trading value (bn) ¥3.8

Key Takeaways

Plant utilization rates in the semi equipment-related business remain low for

some products, incl. CVD-SiC, and in Malaysia, where capacity is being expanded,

but many of the main bases in China have risen to above 80%.

The currently disclosed plan for the semi equipment-related segment assumes

WFE growth of 20%. Since the start of this year, inquiries from major customers

have continued to increase.

Margins in the semi equipment-related business fell in 2H F3/26 due to valuation

losses on items such as quartz crucibles and metal processing, but the company

expects improvement in F12/26 as these issues are resolved and utilization rates

rise.

In 4Q F3/26, electronic devices were sluggish because sensors saw defects during

production transfer and the company booked lump-sum provisions for power

semiconductor substrates. The company expects improvement in F12/26 as these

issues are resolved and TEC expands.

The timing remains undecided, but there is no change in plans for ¥50bn in group

asset sales and ¥20bn in share buybacks. The assumed ROE for F12/28 is 11%, but

the medium-term target of 15% is unchanged.