Nippon Investment Bespoke Research UK Ltd

Nippon Investment Bespoke Research UK

Equity Bottom-Up

<ul><li>MEC (4971 JP) produced FY26 1H (Dec year-end) OP of ¥4,135mil (+69.4% YoY) on sales of ¥12,594mil (+34.2% YoY), coming in ahead of guidance for OP of ¥4,000mil (+63.9% YoY) on sales of ¥12,250mil (+30.5% YoY).</li><li>Based on the ongoing demand outlook for high-end semiconductor packages for which MEC’s core chemicals are used, the full-year FY26 guidance was revised up from OP of ¥7,600mil (+32.2% YoY) on sales of ¥24,500mil (+17.0% YoY)] to OP of ¥8,300mil (+44.4% YoY) on sales of ¥25,800mil (+23.2% YoY).</li><li>While the CZ-8101 will continue to contribute to FY26 earnings, the growth of the more advanced CZ-8201 and CZ-8401 package substrates is also expected to drive growth.</li></ul>

MEC (4971 JP) produced FY26 1H (Dec year-end) OP of ¥4,135mil (+69.4% YoY) on sales of ¥12,594mil (+34.2% YoY), coming in ahead of guidance for OP of ¥4,000mil (+63.9% YoY) on sales of ¥12,250mil (+30.5% YoY).Based on the ongoing demand outlook for high-end semiconductor packages for which MEC’s core chemicals are used, the full-year FY26 guidance was revised up from OP of ¥7,600mil (+32.2% YoY) on sales of ¥24,500mil (+17.0% YoY)] to OP of ¥8,300mil (+44.4% YoY) on sales of ¥25,800mil (+23.2% YoY).While the CZ-8101 will continue to contribute to FY26 earnings, the growth of the more advanced CZ-8201 and CZ-8401 package substrates is also expected to drive growth.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/taiyo-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15154:1" rel="noopener">Taiyo Holdings (4626 JP)</a> shares were up 19.1% based on a <a href="https://news.bloombergtax.com/private-equity/taiyo-holdings-gets-buyout-proposals-from-firms-including-kkr" target="_blank" rel="noopener">Bloomberg report</a> that it received privatisation proposals from KKR and Nippon Sangyo Suishin Kiko. </li>
<li>Taiyo confirmed that it has received privatisation offers. The Board would view privatisation as a solution to rid itself of Oasis, which has recently waged an <a href="https://www.corpgovfortaiyo.com/taiyo-corp-gov" target="_blank" rel="noopener">activist campaign</a>. </li>
<li>At the last close price of JPY6,230, Oasis would be up 45.9% on its highest price of JPY4,720. My analysis suggests that an offer around JPY7,000 can be justified.</li>
</ul>



Taiyo Holdings (4626 JP) shares were up 19.1% based on a Bloomberg report that it received privatisation proposals from KKR and Nippon Sangyo Suishin Kiko. 
Taiyo confirmed that it has received privatisation offers. The Board would view privatisation as a solution to rid itself of Oasis, which has recently waged an activist campaign. 
At the last close price of JPY6,230, Oasis would be up 45.9% on its highest price of JPY4,720. My analysis suggests that an offer around JPY7,000 can be justified.


Taiyo Holdings (4626 JP): Privatisation Interest as Oasis Agitates

<ul><li>MEC (4971 JP) reported FY26 Q1 (Dec year-end) earnings, coming in with OP of ¥2,079mil (+90.2% YoY) on sales of ¥6,128mil (+38.5% YoY).</li><li>Given the strong Q1 performance, the 1H guidance was revised up from OP of ¥3,000mil (+22.9% YoY) on sales of ¥10,800mil (+15.1% YoY) to OP of ¥4,000mil (+63.9% YoY) on sales of ¥12,250mil (+30.5% YoY) and for the full-year, from FY26 OP of ¥6,500mil (+13.1% YoY) on sales of ¥22,500mil (+7.4% YoY) to OP of ¥7,600mil (+32.2% YoY) on sales of ¥24,500mil (+17.0% YoY).</li><li>The revision to both the 1H and full-year guidance simply reflects the equivalent level of overshoot seen in Q1.</li></ul>

MEC (4971 JP) reported FY26 Q1 (Dec year-end) earnings, coming in with OP of ¥2,079mil (+90.2% YoY) on sales of ¥6,128mil (+38.5% YoY).Given the strong Q1 performance, the 1H guidance was revised up from OP of ¥3,000mil (+22.9% YoY) on sales of ¥10,800mil (+15.1% YoY) to OP of ¥4,000mil (+63.9% YoY) on sales of ¥12,250mil (+30.5% YoY) and for the full-year, from FY26 OP of ¥6,500mil (+13.1% YoY) on sales of ¥22,500mil (+7.4% YoY) to OP of ¥7,600mil (+32.2% YoY) on sales of ¥24,500mil (+17.0% YoY).The revision to both the 1H and full-year guidance simply reflects the equivalent level of overshoot seen in Q1.

<ul><li>MEC (4971 JP) reported FY25 (Dec year-end) OP of ¥5,748mil (+26.0% YoY) on sales of ¥20,947mil (+14.9% YoY), surpassing the firm’s guidance of OP of ¥5,500mil (+20.5% YoY) on sales of ¥20,300mil (+11.3% YoY).</li><li>Chemicals sales rose +15.6% YoY to ¥20,211mil while chemical sales volume also gained +13.4% YoY to 47,717ton.</li><li>The gross profit margin [GPM] improved to 62.0% (+1.1ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101, and a change in sales mix due to decline in machinery sales.</li></ul>

MEC (4971 JP) reported FY25 (Dec year-end) OP of ¥5,748mil (+26.0% YoY) on sales of ¥20,947mil (+14.9% YoY), surpassing the firm’s guidance of OP of ¥5,500mil (+20.5% YoY) on sales of ¥20,300mil (+11.3% YoY).Chemicals sales rose +15.6% YoY to ¥20,211mil while chemical sales volume also gained +13.4% YoY to 47,717ton.The gross profit margin [GPM] improved to 62.0% (+1.1ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101, and a change in sales mix due to decline in machinery sales.

<ul><li>MEC (4971 JP) reported FY25 (Dec year-end) Q1~Q3 OP of ¥4,247mil (+16.4% YoY) on sales of ¥14,987mil (+9.5% YoY.</li><li>Chemicals sales rose +11.6% YoY to ¥14,559mil while chemical sales volume also gained +10.9% YoY to 34,844ton.</li><li>The gross profit margin [GPM] improved to 62.4% (+1.0ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101.</li></ul>

MEC (4971 JP) reported FY25 (Dec year-end) Q1~Q3 OP of ¥4,247mil (+16.4% YoY) on sales of ¥14,987mil (+9.5% YoY.Chemicals sales rose +11.6% YoY to ¥14,559mil while chemical sales volume also gained +10.9% YoY to 34,844ton.The gross profit margin [GPM] improved to 62.4% (+1.0ppt YoY), thanks to sales growth of MEC’s core product, CZ-8101.

Japan

MEC COMPANY LTD. manufactures and markets chemicals and equipment for printed circuit boards.  The Company has sales/manufacturing subsidiaries in Taiwan, Hong Kong, Belgium, and US.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Mec Co Ltd (4971 JP)

MEC Co., Ltd (4971 JP): RESEARCH UPDATE

MEC (4971 JP) produced FY26 1H (Dec year-end) OP of ¥4,135mil (+69.4% YoY) on sales of ¥12,594mil (+34.2% YoY), coming in ahead of guidance for OP...

Nippon Investment Bespoke Research UK

Taiyo Holdings (4626 JP): Privatisation Interest as Oasis Agitates

The Board would view privatisation as a solution to rid itself of Oasis, which has recently waged an activist campaign. My analysis suggests that...

Arun George

MEC Co., Ltd (4971 JP): Research Update

MEC (4971 JP) reported FY26 Q1 (Dec year-end) earnings, coming in with OP of ¥2,079mil (+90.2% YoY) on sales of ¥6,128mil (+38.5% YoY). Given the...

Nippon Investment Bespoke Research UK

MEC CO., LTD (4971 JP): RESEARCH UPDATE

MEC (4971 JP) reported FY25 (Dec year-end) OP of ¥5,748mil (+26.0% YoY) on sales of ¥20,947mil (+14.9% YoY), surpassing the firm’s guidance of OP...

Nippon Investment Bespoke Research UK

MEC Co., LTD (4971 JP): RESEARCH UPDATE

MEC (4971 JP) reported FY25 (Dec year-end) Q1~Q3 OP of ¥4,247mil (+16.4% YoY) on sales of ¥14,987mil (+9.5% YoY. Chemicals sales rose +11.6% YoY...

Nippon Investment Bespoke Research UK

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)