26/12 Q2 results: Weak demand for ultrasonic sensors but recovery for current sensors: Quick Note

研报英文原文证据摘录

Global Markets Research

Nippon Ceramic

7 August 2026

6929.T 6929 JP / EQUITY: JAPAN ELECTRONIC PARTS

26/12 Q2 results: Weak demand for ultrasonic

sensors but recovery for current sensors

Quick Note

First impression in line: Q2 operating profits undershoot our forecast on sharp rise

in material costs, but current sensors recover

Nippon Ceramic released 26/12 Q2 results at 15:10 JST on 7 August, posting operating

profits of ¥1.55bn (down 6% y-y) versus our forecast of ¥1.70bn. Q2 sales of ultrasonic

sensors (for safety applications) were flat y-y at ¥2.99bn, slightly short of our forecast of

¥3.10bn. We attribute this to lower Chinese automobile sales at Japanese OEMs and the

recent sharp rise in prices for electronic parts and metals. However, we think that the

company will be able to pass on cost increases from Q3 onwards. Sales of flame sensors

also look to have been strong. Adoption of these products has been rising rapidly within

the SPE industry, which uses flammable organic solvents. At present, they account for

only around 5% of companywide sales, but we expect them to carry on rising strongly from

H2 onwards thanks to buoyant demand for semiconductors for use in data centers.

Moreover, sales of current sensors rose from ¥0.41bn in Q1 to ¥0.55bn in Q2. Sales for

new models at Japanese OEMs got off the ground. Sales to Chinese OEMs have

continued to fall, but the impact has been limited as the Chinese OEM sales weighting for

current sensors had already fallen to around 10%. However, we expect sales to continue

to recover from H2 onwards from an expansion in delivery vehicle models at Japanese

OEMs.

Buy

Rating

Target price

JPY 4,800

Closing price

JPY 3,765

7 August 2026

(Note: Quick Note reports are not a

vehicle for changes to ratings, target

prices, or earnings forecasts)

Research Analysts

Japan small cap - autos & auto

parts

Wataru Ishimoto - NSC

Japan autos & auto parts

Wataru Ishimoto - NSC

While Q2 operating profits undershot our forecast on higher costs for ultrasonic sensors,

our first impression is nevertheless neutral as we expect increased demand for current

sensors and flame sensors to continue to contribute to profits through 27/12. The

…