27/3 Q1 results: Delays arise in SPE component business

研报英文原文证据摘录

27/3 Q1 results: Delays arise in SPE component business

Global Markets Research

31 July 2026Toto

5332.T 5332 JP / EQUITY: JAPAN HOUSING & REAL ESTATE

Rating27/3 Q1 results: Delays arise in SPE component

Remains Neutralbusiness

Target price JPY 8,180Ceramic component demand remains strong, company considering major Remains

investment

Closing price JPY 7,010We fine-tune our profit forecast, retain our Neutral rating 31 July 2026

Released on 31 July, 27/3 Q1 (Apr–Jun) operating profits fell 2% y-y to ¥8.1bn, ¥400mn

Implied upside +16.7%short of our ¥8.5bn forecast for a 4% rise. However, while profits undershot our forecast

by ¥2.0bn at the ceramic components segment for use in SPE, they beat our forecast by

¥1.7bn at the core housing fixtures segment, mainly in Japan.

According to results briefing materials, ceramics components were affected by a one-time Relative performance chart

impact from shipments being pushed back because of disruption to the semiconductor

supply chain, and it looks as though the company will be able to make up for this in Q2. At

the housing fixtures segment, shipments for remodeling projects in Japan were stronger

than we expected, but the recovery in the US housing market is likely to be delayed by

stubbornly high interest rates. We revise our earnings forecasts for the Japan housing

fixtures business to reflect the company's new announcement of price hikes of around

10% for orders from 1 December. However, we only revise our profit forecasts at the

segment level as we think the increase in prices will merely offset higher costs, and with

no major changes, we retain our target price. We retain our Neutral rating.

Expectations for growth investments and shareholder returns backed by strong

finances