NISSHA (7915): Management briefing: Targets medical business operating margin of 10% in FY2027

研报英文原文证据摘录

NISSHA (7915): Management briefing: Targets medical business operating margin of 10% in FY2027

J P M O R G A N Asia Pacific Equity Research

07 July 2026

NISSHA (7915) Neutral

7915.T, 7915 JP

Management briefing: Targets medical business Price (07 Jul 26):¥1,309

operating margin of 10% in FY2027 Price Target (Dec-27):¥1,460

Nissha held a management briefing July 7 from 11:00 JST. It provided updates on Japan Equity Research

strengthening the business portfolio, the medical devices contract development

Technology - Electronic

and manufacturing organization (CDMO) business, and the medical segment. Components

Sales in the medical devices CDMO business are firm, but profitability AC Akinori Kanemoto

improvement stagnated in FY2024–25, due partly to cost inflation and early end-

(81-3) 6736 8628

of-life for some products. However, Nissha plans to expand profitability akinori.kanemoto@jpmorgan.com

improvement toward FY2027 by raising the CDMO ratio, increasing high-value- Ikki Shibata

added products in new fields, and expanding micro molded components. We (81-3) 6736 8641

forecast the medical segment operating margin at the 8% level in FY2027, but ikki.shibata@jpmorgan.com

Nissha plans to raise this to over 10%. The medical segment showed signs of JPMorgan Securities Japan Co., Ltd.

improving profitability in 1Q FY2026, but given the weak track record of the past

two years, we will watch progress while looking for future profitability

improvement. We think Nissha’s valuation discount could decrease if it confirms

sustained earnings improvement in the medical segment.

• Strengthening business portfolio management: Nissha restructured its

business portfolio through selective focus and diversification during the 2020s,

changing from its emphasis on IT devices during the 2010s.