Lion (4912) 1Q results: Management expresses strong commitment to achieving earnings guidance even considering Middle East crisis impact

Research evidence excerpt

Lion (4912) 1Q results: Management expresses strong commitment to achieving earnings guidance even considering Middle East crisis impact

J P M O R G A N Asia Pacific Equity Research

13 May 2026

Lion (4912)

1Q results: Management expresses strong commitment Overweight

to achieving earnings guidance even considering 4912.T, 4912 JP

Middle East crisis impact Price (12 May 26):¥1,518

Price Target (Dec-26):¥2,150

Somewhat positive: 1Q business profit was ¥6.0 billion, in line with our estimate Japan Equity Research

of ¥6.1 billion. Domestic consumer products missed our estimates, but overseas

Cosmetics and Personal Care /

segment business profit was above our estimate, leading to a strong start overall to Paper and Packaging

the fiscal year. Lion explained at the briefing that it plans to offset additional costs AC Akiko Kuwahara

of ¥3-4 billion from the Middle East crisis with various measures. It is responding

(81-3) 6736-8617

quickly to the crisis and expressed strong commitment to achieving FY2026 akiko.kuwahara@jpmorgan.com

operating profit guidance and its medium-term plan targets, giving us a positive JPMorgan Securities Japan Co., Ltd.

impression.

• Summary of management explanations on key topics: 1) Impact of Middle

East crisis and countermeasures: Assuming crude oil prices at $100/bbl,

management estimates additional costs in FY2026 at ¥3-4 billion, breaking

down as 60% in Japan and 40% overseas. If various measures are successful,

Lion expects them to offset the additional costs and views full-year guidance

as achievable. 2) Reasons for expecting cost increases to be more limited than

during the previous sharp rise in raw materials prices (FY2022): Lion said that

last time, crude oil prices had risen to around $100/bbl from a very low level.