We raise target price, reiterate Buy rating

研报英文原文证据摘录

We raise target price, reiterate Buy rating

Global Markets Research

2 July 2026Lintec

7966.T 7966 JP / EQUITY: JAPAN PAPER & PULP

RatingWe raise target price, reiterate Buy rating Remains Buy

Target price

Increased from 6,200 JPY 7,850We raise MLCC material sales volume forecasts for 27/3 and 28/3

Closing price JPY 7,110We raise forecasts, reiterate Buy rating 1 July 2026

We reiterate our Buy rating on Lintec. We raise our earnings forecasts and hike our target

Implied upside +10.4%price to ¥7,850 on upward revisions to our 27/3 and 28/3 sales volume forecasts for

release film for MLCCs in view of strong AI server demand, and to factor in the easing of

tensions in the Middle East. We reduce the discount we apply to the Russell/Nomura

Large Cap manufacturing sector average P/E from 20% to 10% to reflect the earnings

Relative performance chartupside potential from the shipment of new products for CoPoS packaging. We obtain our

target price using a P/E of around 19.5x our 27/3 adjusted EPS forecast of ¥400. We think

the company will be able to tap buoyant demand for MLCC materials and for

semiconductor tape in China in 27/3 and 28/3.

We raise 27/3 forecasts to reflect lower input prices, stronger outlook for MLCC

materials

We raise our 27/3 operating profit forecast by ¥2.1bn to ¥30.7bn (up 22% y-y) primarily to

reflect the a decline in raw material prices resulting from an easing of tensions in the

Middle East (accounting for ¥1.3bn of the upward revision) and a hike to our forecast for

sales volumes for MLCC release film and other products (¥0.8bn). WTI crude oil prices

have been trending downwards on expectations of normalization in the Middle East. We

had previously assumed y-y dents to profits from deteriorating spreads of ¥1.0bn in 27/3