Nichicon (6996): Earnings model update: In addition to medium-term earnings from AI servers, our short-term focus is on the impact of price negotiations

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Nichicon (6996): Earnings model update: In addition to medium-term earnings from AI servers, our short-term focus is on the impact of price negotiations

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

15 July 2026

Nichicon (6996)

Earnings model update: In addition to medium-term Overweight

earnings from AI servers, our short-term focus is on the 6996.T, 6996 JP

impact of price negotiations Price (15 Jul 26):¥3,250

▲Price Target (Dec-27):¥4,500

Prior (Dec-26):¥2,400

We raise our price target to ¥4,500 from ¥2,400, extending the time frame for

achieving it to December 2027 (from December 2026), and maintain our Japan Equity Research

Overweight rating. We expect earnings to grow over the short-medium term, Technology - Electronic

driven by a market turnaround for industrial equipment, completion of inventory Components

adjustments in automotive applications, and the full-scale expansion of aluminum AC Akinori Kanemoto

electrolytic capacitors for AI servers. Over the long term, the company stands to (81-3) 6736 8628

benefit from an increase in the number of extended length capacitors with the akinori.kanemoto@jpmorgan.com

introduction of 800V PSUs for AI servers and rising demand for hybrid capacitors Ikki Shibata

around PSU and IBC applications. However, despite the rally in the share price (81-3) 6736 8641

since May 2026, prices in the aluminum electrolytic capacitor industry only began ikki.shibata@jpmorgan.com

to bottom out in 2H FY2025, and we still expect operating profit for 1Q FY2026 JPMorgan Securities Japan Co., Ltd.

to stay in the ¥1.0 billion range. The gap between the share price and recent

earnings has widened considerably, raising concerns of the risk of a share price Key Changes (FYE Mar)

correction after 1Q results.