GP Margin Likely to Improve, FX Could Provide Further Upside

研报英文原文证据摘录

GP Margin Likely to Improve, FX Could Provide Further Upside

Japan | Medical Supplies & Devices

Nipro EquityJulyResearch13, 2026

TARGET | ESTIMATE CHANGEGP Margin Likely to Improve, FX Could Provide

RATING HOLDFurther Upside

PRICE ¥1,547^

Ahead of 1Q earnings, we update our estimates. We expect 1Q GPM

improvement YoY, driven by 1) the lifting of shipment restrictions on PRICE TARGET | % TO PT ¥1,700 (¥1,500) | +10%

dialyzers in Japan and 2) a recovery in Pharma Packaging. In addition, 52W HIGH-LOW ¥1,761 - ¥1,326

Nipro’s FX assumptions appear conservative, suggesting upside vs co. FLOAT (%) | ADV MM (USD) 91.4% | 5.53

guidance if current exchange rates continue. Reflecting the expected MARKET CAP ¥252.2B | $1.6B

improvement in GP margin, we update our estimates and raise our target TICKER 8086 JP ^Prior trading day's closing price unless otherwise

price to ¥1,700, while maintaining our Hold rating. noted.

GP margin likely improve, but guidance sets a high hurdle. Nipro’s dialyzer sales in Japan FY (Mar) CHANGE TO JEFe JEF vs CONS

declined by c.¥0.3bn YoY in 1Q FY3/26 due to shipment restrictions on Fineflux. As the 2026 2027 2026 2027

restrictions were lifted in December 2025, we expect dialyzer sales to recover in 1Q FY3/27. In REV NA NA NA NA

addition, while Pharma Packaging performance was weak through the first nine months of last

EPS +33% +8% +23% +7%

year, trends improved in 4Q, and we expect the business to return to quarterly profitability in

1Q. As a result, we forecast 1Q GP margin to improve significantly to 33.1% from 31.5% a year

2026 (¥) Q1A Q2A Q3A Q4 FY3

ago. That said, we view the company’s FY3/27 GP margin guidance of 33.6% as somewhat

EPS 21.81 19.22 37.76 27.88 106.67

ambitious.

PREV 80.12

Overseas business to benefit from FX.