Kyocera (6971): Earnings model update: Expect earnings to beat guidance, due mainly to AI-related demand

研报英文原文证据摘录

Kyocera (6971): Earnings model update: Expect earnings to beat guidance, due mainly to AI-related demand

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

14 July 2026

Kyocera (6971) Neutral

6971.T, 6971 JP

Earnings model update: Expect earnings to beat Price (14 Jul 26):¥3,660

guidance, due mainly to AI-related demand ▲Price Target (Dec-27):¥3,900 Prior (Dec-26):¥2,400

We extend the time horizon of our price target from December 2026 to December

2027. We revise our December 2027 price target from ¥2,400 to ¥3,900 but Japan Equity Research

maintain our Neutral rating. We previously calculated our price target using DCF Technology - Electronic

based on our FY2027 estimates and an ROIC model assuming zero growth, but this Components

assumed FY2027 earnings could be sustained. However, we now believe this AC Akinori Kanemoto

approach is not suitable for the current longer-term earnings outlook, which centers (81-3) 6736 8628

on AI-related demand. We therefore apply a P/E of 27x to our FY2028 EPS akinori.kanemoto@jpmorgan.com

estimate of ¥143. We derive this P/E by multiplying the sector’s average three-year Ikki Shibata

forward P/E of 18.5x by Kyocera’s average sector-relative P/E of 1.47x since April (81-3) 6736 8641

2025 (Bloomberg consensus, as of July 13), when the market began to factor in the ikki.shibata@jpmorgan.com

value of its investment securities. JPMorgan Securities Japan Co., Ltd.

• Earnings forecasts: We raise our earnings estimates in light of FY2025 results Key Changes (FYE Mar)

and recent market trends (we revise our forex assumption from ¥152/$ to ¥155/

Prev Cur Δ

$). We raise our FY2026 operating profit estimate from ¥120.0 billion to Adj. EPS - 27E (¥) 91.17 114.15 25.2%

¥149.5 billion (guidance: ¥130.0 billion; Bloomberg consensus estimate: Adj.