Nippon Electric Glass (5214): 2Q results: Cuts guidance, citing higher energy & material costs, weak yen, delayed productivity improvement benefits

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Nippon Electric Glass (5214): 2Q results: Cuts guidance, citing higher energy & material costs, weak yen, delayed productivity improvement benefits

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

01 August 2026

Nippon Electric Glass (5214)

2Q results: Cuts guidance, citing higher energy & Overweight

material costs, weak yen, delayed productivity 5214.T, 5214 JP

improvement benefits Price (31 Jul 26):¥5,323

Price Target (Dec-26):¥7,300

Negative: Nippon Electric Glass (NEG) reported 2Q operating profit of ¥4.9 Japan Equity Research

billion (–25% QoQ; Bloomberg estimate ¥6.5 billion, our estimate ¥5.1 billion)

Technology - Semiconductor/

and revised down full-year guidance sharply from ¥33 billion to ¥20 billion (–41% Technical Materials

YoY; ¥32.6 billion, ¥35 billion). Management has factored in a roughly ¥5 billion AC Mio Shikanai

cost increase due to higher energy and material prices (including the impact of the

(81-3) 6736 1313

weaker yen), but the rest of the downward revision is mostly because the impact mio.shikanai@jpmorgan.com

of productivity improvements in the composites business has been slow to come Junya Ayada

through. Closely watched semiconductor products were solid, and NEG (81-3) 6736 8631

apparently made only a minimal revision to displays as maintenance has junya.ayada@jpmorgan.com

progressed, but the downward revision was larger than expected. A results briefing JPMorgan Securities Japan Co., Ltd.

is scheduled for 10:00 August 3.

• 2Q results summary: NEG reported 2Q sales of ¥81.3 billion (+3% YoY, +8%

QoQ) and operating profit of ¥4.9 billion (–44%, –25%). (1) Display glass:

Demand remained solid, but operating profit fell QoQ due to higher

maintenance costs. (2) Glass fiber: The business continued to report operating