Toppan and DNP Earnings Update: Reaffirming Positive View on Medium-Term Plans

Goldman Sachs updates earnings forecasts for TOPPAN and DNP, maintaining a positive view based on new medium-term plans and attractive valuations below 1.0x P/B.

Key Takeaways

• 1.TOPPAN's FC-BGA business is modeled for high growth with a 35% sales CAGR for FY3/27-29, though margin pressure is expected due to R&D for next-gen packages.
• 2.DNP is shifting toward an 'agile' capital allocation framework and portfolio strategy, aiming for higher profit growth as top-line sales accelerate.
• 3.Current valuations for both companies are viewed as attractive, with share prices trading below 1.0x P/B while ROE/ROIC levels exceed cost of capital.

Table of Contents

• Updating our earnings forecasts
• TOPPAN Holdings
• FC-BGA
• Info & Communications
• New medium-term plan
• Catalysts
• Dai Nippon Printing
• SoTP-based target price calculation
• Our view on implied and current P/E and P/B
• Investment Thesis - TOPPAN Holdings
• Price Target Risks and Methodology - TOPPAN Holdings
• Investment Thesis - Dai Nippon Printing
• Price Target Risks and Methodology - Dai Nippon Printing
• Disclosure Appendix

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