27/3 Q1 results: We hike our target price to ¥4,500: Start of shipments of LFP batteries for data centers, a major new product, at a time when margins improving across multiple businesses

研报英文原文证据摘录

27/3 Q1 results: We hike our target price to ¥4,500: Start of shipments of LFP batteries for data centers, a major new product, at a time when margins improving across multiple businesses

Global Markets Research

1 August 2026TDK

6762.T 6762 JP / EQUITY: JAPAN ELECTRONIC PARTS

Rating27/3 Q1 results: We hike our target price to ¥4,500 Remains Buy

Target price

Start of shipments of LFP batteries for data centers, a major new product, Increased from 4,000 JPY 4,500

at a time when margins improving across multiple businesses

Closing price JPY 3,008We raise our forecasts and hike our target price to ¥4,500 31 July 2026

The company's Apr–Jun (Q1) results were strong. Sales and operating profits beat our forecasts

Implied upside +49.6%across all segments in Q1. The outperformance in earnings was multifaceted, including strong

business execution capabilities at the Li-ion battery business, benefits from new products and

restructuring, and increased demand in the market for parts for high-voltage industrial machinery

(including AI data centers), an area of strength for the company. The outperformance cannot be

Relative performance chartexplained by the cyclical factor of recovery in demand for existing products. In light of Q1 results and

Q2 guidance, we raise our forecasts for 27/3 onwards for all segments other than the other

segment, and we hike our target price to ¥4,500. We revise our cost of equity capital assumption to

5.0% from 5.2% to reflect improved growth prospects for the battery business (see below).

Better-than-expected performance in Q1 on multiple fronts, reforms by current management

team start to bear fruit

In Q1, sales rose 38.3% y-y to ¥741.0bn and operating profits rose 53.0% to ¥86.3bn (our pre-

release forecasts: ¥660.0bn, ¥72.0bn).