USS: F3/26 Results: Auction Market Remains Strong

Research evidence excerpt

USS: F3/26 Results: Auction Market Remains Strong

Update

May 12, 2026 12:16 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MUSS (4732) | Japan Katsumi Arai

Equity Analyst

F3/26 Results: Auction Market Katsumi.Arai@morganstanleymufg.comAkiho Toyama +81 3 6836-8918

Akiho.Toyama@morganstanleymufg.com +81 3 6836-8405

Remains Strong

USS (4732.T, 4732 JP)

Mid Small Cap/Non-Manufacturer | Japan

Reaction to earnings

Stock Rating Equal-weight

Unchanged Modest upside Modest revision higher Industry View In-Line

Impact to our thesis Financial results versus consensus Direction of next 12-month Price target ¥1,700

consensus EPS Shr price, close (May 12, 2026) ¥1,742

Mkt cap, curr, basic (bn) ¥808.8

Source: Company data, Morgan Stanley Research Avg daily trading value (bn) ¥2.1

Key Takeaways

F3/26 results and F3/27 guidance both above consensus, but largely in line with

our forecasts, with no major surprises. Buybacks also announced, in line with

100% total shareholder return policy.

Although concerns about Middle East developments weighing on the auction

market are strong in the equity market, the company’s April monthly data

remained robust, suggesting that the domestic used‑car market remains buoyant.

Because the UAE was the top destination for Japan’s used-car exports in 2025,

investor concerns about the impact of Middle East developments on the domestic

used-car auction market persist. However, looking at the company’s already released

April monthly data, listings rose 9.1% YoY and units sold increased 14.7% YoY. While

used-car export trends do affect auction volumes, the company’s transaction

volumes remain robust. The average transaction value (i.e., auction prices) also

stayed at a high level, up 13.6% YoY. This should be seen as a positive implication for