Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>¥15 Bn investment to triple glass cloth capacity at Fukushima plant, with new operations starting Q4 FY2026.</li>
<li>Demand for low-dielectric and T-glass cloth in AI servers and semiconductors has outpaced supply, creating a strategic bottleneck and premium pricing.</li>
<li>Full earnings uplift from FY2027 onward, with projected revenue and EPS rising 12–15% post-expansion.</li>
</ul>


¥15 Bn investment to triple glass cloth capacity at Fukushima plant, with new operations starting Q4 FY2026.
Demand for low-dielectric and T-glass cloth in AI servers and semiconductors has outpaced supply, creating a strategic bottleneck and premium pricing.
Full earnings uplift from FY2027 onward, with projected revenue and EPS rising 12–15% post-expansion.


Nitto Boseki (Nittobo, TSE:3110) – Expansion Unlocks AI-Linked Growth, but Execution Key

<ul>
<li>Results: Q1 FY26 came in solid, with strength in Electronic Materials offsetting weakness in Insulation.</li>
<li>Guidance/Estimates: FY26 guidance was reiterated, and we retain our estimates, with 2H execution key.</li>
<li>Valuation: At ~9.5x EV/EBITDA FY26E, Nittobo looks inexpensive, with its monopoly T-glass exposure offering direct leverage to NVIDIA-driven AI/data center demand.</li>
</ul>


Results: Q1 FY26 came in solid, with strength in Electronic Materials offsetting weakness in Insulation.
Guidance/Estimates: FY26 guidance was reiterated, and we retain our estimates, with 2H execution key.
Valuation: At ~9.5x EV/EBITDA FY26E, Nittobo looks inexpensive, with its monopoly T-glass exposure offering direct leverage to NVIDIA-driven AI/data center demand.


Nittobo (3110 JP) – Q1 Solid, Guidance Retained; 2H Execution Key for AI-Led Growth

<ul>
<li>Revenue grew steadily over five years, supported by demand for high-performance glass cloth used in advanced semiconductor packaging.</li>
<li>It controls a critical bottleneck in AI substrates and is expanding capacity with ¥80B capex through FY28.</li>
<li>EPS is set to rise 46% by FY28, with fwd PE at 9.3x and EV/EBITDA at 5.1x, suggesting scope for valuation re-rating.</li>
</ul>


Revenue grew steadily over five years, supported by demand for high-performance glass cloth used in advanced semiconductor packaging.
It controls a critical bottleneck in AI substrates and is expanding capacity with ¥80B capex through FY28.
EPS is set to rise 46% by FY28, with fwd PE at 9.3x and EV/EBITDA at 5.1x, suggesting scope for valuation re-rating.


Nittobo (3110 JP): Scarcity Premium in AI Substrates with Strong Earnings Visibility

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>Intel reportedly producing chips for Apple should also help Ibiden.</li>
<li>Kioxia shakes off Bain selling although there looks to be plenty of upside yet after recent correction.</li>
<li>China tensions simmer further over the w/e positive for defense, negative for tourism related.</li>
</ul>


Intel reportedly producing chips for Apple should also help Ibiden.
Kioxia shakes off Bain selling although there looks to be plenty of upside yet after recent correction.
China tensions simmer further over the w/e positive for defense, negative for tourism related.


Japan Morning Connection: Strong Month-End for Tech Sets Japan up for a Solid Start to Dec

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

Chugoku Electric Power Co / Index Rebalance

<ul>
<li>JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.</li>
<li>The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.</li>
<li>Below is a look at potential ADDs and DELs for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-November 2025.</li>
</ul>


JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
The annual index review takes place in August every year. We look at the latest rankings of potential ADDs/DELs every month.
Below is a look at potential ADDs and DELs for the JPX-Nikkei 400 Rebalance to come in August 2026 based on trading data as of end-November 2025.


Quiddity JPX-Nikkei 400 Rebal 2026: End-Nov 2025 Ranks

Japan

NITTO BOSEKI CO., LTD. produces and sells textiles, building materials, and glass fibers.  The Company provides cotton, rock wool, glass filament, flooring, sound-absorbing ceiling plates, and melamine boards.  The Company also manufactures medical products and specialty chemicals, and provides environmental engineering and real estate services.

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Nitto Boseki (3110 JP)

Nitto Boseki (Nittobo, TSE:3110) – Expansion Unlocks AI-Linked Growth, but Execution Key

• 1H FY25 strong: Sales +8% YoY (¥57.4bn), OP +29% (¥9.5bn) on strong AI-glass demand. • Guidance raised: OP +12%, ordinary +9%, net +188% aided by...

Rahul Jain

Nittobo (3110 JP) – Q1 Solid, Guidance Retained; 2H Execution Key for AI-Led Growth

Q1 FY26 results solid, Electronic Materials strong, Insulation weak. FY26 guidance reiterated, Nittobo undervalued at 9.5x EV/EBITDA with T-glass...

Rahul Jain

Nittobo (3110 JP): Scarcity Premium in AI Substrates with Strong Earnings Visibility

Steady revenue growth driven by demand for high-performance glass cloth in semiconductor packaging, with plans for expansion and potential for...

Rahul Jain

Japan Morning Connection: Strong Month-End for Tech Sets Japan up for a Solid Start to Dec

Sentiment for all things AI back on the rise, boosting glass fiber makers. A rebound for memory and Japanese SPE names. Kioxia may keep rising...

Andrew Jackson

Quiddity JPX-Nikkei 400 Rebal 2026: End-Nov 2025 Ranks

In total, there are 48 Potential ADDs and 47 Potential DELs (unique names) presented in the current Quiddity Leaderboard.

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nitto Boseki (Nittobo, TSE:3110) – Expansion Unlocks AI-Linked Growth, but Execution Key

• 1H FY25 strong: Sales +8% YoY (¥57.4bn), OP +29% (¥9.5bn) on strong AI-glass demand. • Guidance raised: OP +12%, ordinary +9%, net +188% aided by...

Rahul Jain

Nittobo (3110 JP) – Q1 Solid, Guidance Retained; 2H Execution Key for AI-Led Growth

​Q1 FY26 results solid, Electronic Materials strong, Insulation weak. FY26 guidance reiterated, Nittobo undervalued at 9.5x EV/EBITDA with T-glass...

Rahul Jain

Nittobo (3110 JP): Scarcity Premium in AI Substrates with Strong Earnings Visibility

​Steady revenue growth driven by demand for high-performance glass cloth in semiconductor packaging, with plans for expansion and potential for...

Rahul Jain

Japan Morning Connection: Strong Month-End for Tech Sets Japan up for a Solid Start to Dec

Sentiment for all things AI back on the rise, boosting glass fiber makers. A rebound for memory and Japanese SPE names. Kioxia may keep rising...

Andrew Jackson

Quiddity JPX-Nikkei 400 Rebal 2026: End-Nov 2025 Ranks

In total, there are 48 Potential ADDs and 47 Potential DELs (unique names) presented in the current Quiddity Leaderboard.

Janaghan Jeyakumar, CFA

Q1 FY26 results solid, Electronic Materials strong, Insulation weak. FY26 guidance reiterated, Nittobo undervalued at 9.5x EV/EBITDA with T-glass...

Steady revenue growth driven by demand for high-performance glass cloth in semiconductor packaging, with plans for expansion and potential for...