Japan Electronic Components: Apr-Jun 2026 results preview

研报英文原文证据摘录

Japan Electronic Components: Apr-Jun 2026 results preview

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10 Jul 2026 05:18:38 ET │ 13 pages

Japan Electronic Components

Apr-Jun 2026 results preview

CITI'S TAKE

Takayuki Naito AC

We expect electronic component sector companies to beat guidance overall +81-3-6776-4644

in April-June, thanks to growth in demand for AI servers, a yen weaker than takayuki.naito@citi.com

assumed in initial guidance, and the strength of smartphone shipments.

Share prices have factored in this strength ahead of time to some extent,

but we think the outlook for profit growth from H2 into next FY will be a

positive catalyst for share prices after the current correction ends. We

anticipate a renewed focus at results on sector companies’ thinking on price

hikes. We think that Murata has a relative advantage in MLCCs. We also

continue to recommend Kyocera and Rohm, given ongoing improvement in

margins thanks to restructuring as well expectations for growth in sales to

datacenters. We also maintain our recommendations on Ibiden and

Nichicon from a medium-term growth perspective.

Key points in April-June results — We expect strong YoY growth in overall profits at

many sector companies thanks to the conservativeness of initial guidance peculiar

to the electronic components sector and the weakening of the yen (Figure 5). We see

upside risk in particular for Kyocera, Rohm, TDK and Hirose as we expect earnings to

be strong relative to guidance. Murata and Taiyo Yuden are likely to continue to

benefit in addition from the uptrend in BB ratios and seasonal factors (smartphone

demand), and this should drive share-price gains.

Thinking on price hikes — GS Yuasa has already announced a 20% price hike for

replacement batteries. This will start to contribute in July-September, and we