Osaka Organic Chemical (4187.T): Update: Updated guidance conservative, we see upside potential

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Osaka Organic Chemical (4187.T): Update: Updated guidance conservative, we see upside potential

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10 Jul 2026 02:35:17 ET │ 14 pages

Osaka Organic Chemical (4187.T)

Update: Updated guidance conservative, we see upside potential

CITI'S TAKE

We revise our forecasts. Although OOC hiked guidance on July 2 and posted

better-than-expected Q2 results on July 9, the share price has weakened.

This is probably because new full-year guidance calls for H2 sales and profit Buy

to decline HoH and previous H2 guidance has been lowered. However, we Price (09 Jul 26 15:30) ¥5,260.0

view revised guidance as conservative and see potential for upside. We

think market expectations of a guidance beat will gradually strengthen, Target price ¥6,000.0↑

causing the shares to rise again. from ¥4,800.0

Expected share price return 14.1%

Q2 results — Sales grew 21% QoQ, and OP rose from ¥1.83bn in Q1 to ¥2.59bn. In Expected dividend yield 2.2%the electronic materials business sales rose 13% QoQ (primarily volume-driven

growth), and OP rose from ¥0.98bn to ¥1.21bn. Within electronic materials, growth Expected total return 16.2%

for display materials (display-related materials) and semiconductor materials (resist Market Cap ¥106,984M

inputs) was particularly strong. In the chemical products business sales expanded

US$663M38% QoQ (primarily price-driven growth), and OP rose from ¥0.42bn to ¥0.85bn.

H2 forecasts — Revised FY11/26 guidance calls for sales to decline 5% HoH and OP

to decline to ¥3.07bn, from ¥4.42bn in H1. Electronics materials sales are expected

to decline 5%. This factors in the drop-out of special demand that arose in Q2, but Price Performance

demand remains firm (centering on semiconductor materials) and there is no sign of (RIC: 4187.T, BB: 4187 JP)

a slowdown.