Japan Electronics Semiconductors TOPPAN DNP earnings update Packaging related businesses support company wide profits

Equity Research 22 August 2026 | 2:10AM JST JAPAN ELECTRONICS/SEMICONDUCTORS

TOPPAN/DNP earnings update: Packaging-related businesses support company-wide profits; post-results growth expectations for electronics heighten

With this report, we update our earnings estimates for TOPPAN Holdings (TOPPAN) Mitsuhiro Icho | and Dai Nippon Printing (DNP). We make only minor revisions to our earnings Goldman Sachs Japan Co., Ltd. estimates, taking into account post-results commentary from both companies (we Daiki Takayama made large upward revisions to our earnings estimates and target prices in our | reports published on the day of their results announcements). Goldman Sachs Japan Co., Ltd.

Key points are as follows. (1) TOPPAN’s FC-BGA business: We leave our 2H-weighted earnings estimates for FY3/27 unchanged based on our view that the proportion of AI ASIC applications will gradually increase in 2H and that the start-up of AST Phase 1 in 4Q will gradually contribute to sales growth. Our view remains unchanged that the extent of profit increase will be somewhat limited as investment costs for next-generation semiconductor packages (such as capex and increased material costs) rise each fiscal year. For AST Phase 2, we assume the timing for an update from TOPPAN is approaching. TOPPAN has adopted a policy of expanding capacity in line with customers’ technology/production roadmaps. Since capacity expansion tends to imply sales growth, we assume that an actual announcement from the company could be viewed by the stock market as a positive catalyst. (2) DNP’s electronics business: Semiconductor photomask sales grew qoq/yoy, centered on advanced nodes. This appears to be a structural trend driven by growing external demand for advanced node DUV optical photomasks by in-house photomask manufacturers. While qoq/yoy sales declines in metal masks, due primarily to the impact of higher memory prices, trended in line with management’s prior expectations, the extent of the sales decline was smaller than we assumed. We believe this reflected factors such as the impact of higher memory prices being relatively limited for high-end customers. The situation, however, remains uncertain, as we assume that the negative impacts from memory could continue from 2Q. (3) Packaging business: While both companies made a strong start in 1Q centered on their packaging businesses, we slightly lower our sales and operating profit estimates for these businesses considering the possibility that some front-loaded demand was included reflecting the impact of the Middle East situation.

Based on the above, we make only minor revisions to our earnings estimates for both TOPPAN and DNP. The EV/EBITDA multiples applied to each company’s segments, derived from peer company comparisons, are also unchanged, as our 12m target prices for both companies. We maintain our Buy rating on TOPPAN and our Neutral

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Goldman Sachs Japan Electronics/Semiconductors

rating on DNP, given the respective upside potential to our target prices. Please also see our reports published on the day of the results announcements for both companies (TOPPAN/DNP).