Featured stock: Nippon Chemical's barium titanate for MLCC drives earnings growth

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Tue May 19, 2026 10:00 am JST Catalyst

Nippon Chemical Industrial Co.,Ltd. <4092> reached a rebound high of 4,010 yen on the 12th of last week before entering a correction phase, but investors may want to aggressively buy during the upward divergence correction with the 25-day moving average. Against the backdrop of an AI data center construction rush, high levels of demand are emerging for multilayer ceramic capacitors (MLCC) used around GPUs in AI servers and for communication boards. The company supplies barium titanate for these MLCCs, and the tailwinds in its earnings environment are strong.

For the fiscal year ending March 2027, the company expects operating profit to increase 16% year-on-year to 2,800 million yen. In early April, the company announced the establishment of a joint venture with TDK Corporation <6762> for the development of electronic component materials and manufacturing processes, with expectations for medium-term business expansion effects. With the PBR left at around 0.6x, there is significant room for valuation correction. It appears poised to break through the year-to-date high of 4,055 yen and enter new highs before long. (Katsura)

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.