Japan Machinery Sector: Apr-Jun results outlook: Will concerns pass?

研报英文原文证据摘录

Japan Machinery Sector: Apr-Jun results outlook: Will concerns pass?

Global Research

17 July 2026ab

Japan Machinery Sector Equities

JapanApr-Jun results outlook: Will concerns pass?

Factory Equipment

Tsubasa Sasaki

Results announcements for the Apr-Jun quarter to begin in earnest from 28 July Analyst

Results announcements will begin with Keyence on 28 July. Against the backdrop of an tsubasa.sasaki@ubs.com

improving demand environment, we expect solid earnings at many companies, driven +813-5208 6207

by sales growth and higher capacity utilisation. We also expect continued upward

revisions to full-year plans, mainly among companies with December fiscal year-ends.

At the results briefings, alongside current demand and earnings trends, we will focus on:

1) risk of advanced or front-loaded orders, 2) progress on measures to raise production,

and 3) potential for price hikes. For companies where the risk of advanced orders is

indicated, share price upside may be limited, while companies where the possibility of

price hikes is indicated could see share price gains. During strong upcycles, shortages of

core components tend to become a risk factor. There have been past cases where

production and sales could not keep pace even as demand rose. We aim to confirm each

company’s procurement and production structure in response to demand growth.

At present, many investors are overweight FA and underweight non-FA, so the share

prices of FA-related names face residual downside unless they can show demand and

earnings growth above market expectations. Conversely, non-FA names could see share

price re-evaluation if improvements in demand and earnings are confirmed.

FA: Solid fundamentals already priced in; can expectations be exceeded?