Nitto Boseki (3110.T) If capacity expansion along with price hikes is announced, how undervalued will the shares look?

研报英文原文证据摘录

Nitto Boseki (3110.T) If capacity expansion along with price hikes is announced, how undervalued will the shares look?

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26 Jun 2026 00:40:17 ET │ 9 pages

Nitto Boseki (3110.T)

If capacity expansion along with price hikes is announced, how

undervalued will the shares look?

CITI’S TAKE Buy

We expect Nittobo to announce additional T-glass capacity expansion Price (25 Jun 26 15:30) ¥20,440.0

soon and perhaps pursue additional price hikes. Our forecasts assume Target price ¥33,000.0

one round of T-glass price hikes (we assume c30% price hikes began

Expected share price return 61.4% penetrating from April 2026, with the price up 25% YoY for FY3/27 and up

5% for FY3/28). Under these assumptions we forecast FY3/28 OP of Expected dividend yield 0.9%

¥41bn/EPS of ¥828 and FY3/29 OP of ¥53.7bn/EPS of ¥1,090. If T-glass Expected total return 62.3%

capacity expansion along with price hikes were announced (assuming Market Cap ¥744,121M

c30% as with the initial hike), we would estimate FY3/28 OP of c¥45bn US$4,605M

and EPS of c¥910, with FY3/29 OP of c¥60bn and EPS of c¥1,230. At

current share price levels (around ¥19,000 at the time of writing) this

corresponds to an FY3/28E PER of c20x and FY3/29E PER of c15x.

Yuta NishiyamaAC

+81-3-6776-4643Background — The company announced T-glass capacity expansion (cloth) with a

yuta.nishiyama@citi.com¥15bn investment at end-August 2025. Subsequently, to offset higher costs

including this investment, we understand the company engaged in initial price hike

negotiations through CY25 H2, with a c30% price hike beginning to penetrate from

April 2026. Similar to 2025, we think T-glass capacity expansion may be announced

around July-September 2026 (we believe this based on company comments at its

earnings briefing).