Mitsubishi Pencil

研报英文原文证据摘录

Mitsubishi Pencil

Global Markets Research

7 July 2026Mitsubishi Pencil

7976.T 7976 JP / EQUITY: JAPAN CHEMICALS & TEXTILES

RatingSales growth both in Japan and overseas Remains Neutral

Target price

Overseas sales growth has been recovering as decline in Posca sales in Increased from 2,350 JPY 2,700

Europe has run its course

Closing price JPY 2,724We keep our Neutral rating 6 July 2026

We update our earnings forecasts and target price for Mitsubishi Pencil in light of 26/12

Implied upside -0.9%Q1 results, and retain our Neutral rating. We expect global sales and profits to rise over

the longer term as the company leverages the strength of its products, including Jetstream

oil-based ballpoint pens, Posca water-based marker pens, and uniball Zento water-based

roller ball pens. We obtain our target price of ¥2,700 by multiplying our 26/12 adjusted

Relative performance chartEPS forecast (which excludes extraordinary gains/losses) of ¥169.8 by a P/E of around

16x, in line with the Russell/Nomura Small Cap (ex financials) average, as our adjusted

EPS growth forecasts of 11% for 27/12 and 4% for 28/12 are broadly in line with the

benchmark averages.

26/12 forecasts: We raise our profit forecasts in view of Q1 results and new forex

assumptions

We raise our 26/12 sales forecast to ¥96.83bn (up 8% y-y) and our operating profit

forecast to ¥12.45bn (up 28%) to reflect Q1 results and new forex assumptions. We

expect sales in Japan to rise y-y thanks to price revisions for some products in fall 2026

and solid sales of uniball Zento, Jetstream, and Kurutoga products. In the US, we expect

the company to roll out uniball Zento and other products while focusing on Posca. In

Europe, we expect sales to return to a growth trajectory as distribution inventory