Nipro (8086): 1Q results: In line with guidance; focus near term on impact of material cost increases and price hikes

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

11 August 2026

Nipro (8086)

1Q results: In line with guidance; focus near term on

impact of material cost increases and price hikes

Neutral: 1Q operating profit of ¥7.7 billion, announced August 10, was in line with

guidance even excluding forex impact and with the Bloomberg consensus estimate

of ¥7.4 billion. Management maintained FY2026 operating profit guidance of ¥40

billion (the Bloomberg consensus estimate is the same). We expect a limited shareprice reaction. FY2026 guidance for the pharma packaging segment looks

somewhat challenging, and management expects material cost increases to have a

¥5–6 billion impact in 2H FY2026, but plans to offset this impact with price hikes.

We think profitability improvement at subsidiary G2/Spryte Holdco will be a key

focus.

1Q results: US customers held back on purchases of core dialyzers ahead of

a switch to new products, but the medical-related segment was on track overall.

The pharmaceutical-related segment was negatively affected by delays of

CDMO orders in 1Q but is on track relative to FY2026 guidance. The pharma

packaging segment benefited from yen depreciation in 1Q, but excluding forex

effects, European sales in particular were weak. Price competition is

intensifying in the European market with the entry of inexpensive Chinese

products. The 1Q operating loss at US subsidiary Gentuity, consolidated from

FY2026, was ¥1.7 billion.

Outlook: 2H FY2026 guidance factors in (1) earnings contributions from new

dialyzer Elisio-HX in the US, (2) dialyzer sales growth and profitability

improvement in Japan, (3) the launch of Forxiga AG and generic drugs, and (4)

the impact of price hikes in the CDMO business. Meanwhile, management

notes that (5) material cost increases should have an impact in 3Q FY2026 and

negatively affect 2H operating profit by ¥5–6 billion. Management expects to

offset this impact through (6) price increases in Japan in 3Q. We see material

cost increases as somewhat of a short-term risk, but our impression is that

results are largely on track in FY2026. We think key factors will be profitability

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