Nihon Kohden (6849) 4Q results: Strong sales including patient monitors in North America, but some concerns about inflation impact

Research evidence excerpt

Nihon Kohden (6849) 4Q results: Strong sales including patient monitors in North America, but some concerns about inflation impact

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

15 May 2026

Nihon Kohden (6849)

4Q results: Strong sales including patient monitors in Overweight

North America, but some concerns about inflation 6849.T, 6849 JP

impact Price (14 May 26):¥1,433

Price Target (Dec-26):¥2,100

Somewhat negative: Nihon Kohden reported 4Q results on May 14 and Japan Equity Research

announced the cancelation of treasury shares (1.75% of total shares issued). 4Q

Medical Technologies & Services

operating profit of ¥9.6 billion (−1.7% YoY; Bloomberg consensus estimate ¥10.7

billion) fell short of guidance. 4Q sales were in line with guidance, but North Naoko Saito AC

American SG&A expenses were above guidance as a result of double-digit growth (81-3) 6736-8693

naoko.saito@jpmorgan.com

in North American patient monitor sales in 4Q. The 4Q gross margin also missed

Seiji Wakao, Ph.D.

guidance due to higher raw material costs, inventory write-downs, and other (81-3) 6736-8612

factors. Nihon Kohden forecasts strong domestic and overseas sales in FY2026, seiji.wakao@jpmorgan.com

but due to concerns about the impact of inflation, we expect the share price reaction JPMorgan Securities Japan Co., Ltd.

to be somewhat negative. Nihon Kohden plans to hold a 4Q results briefing on May

15 at 09:00 JST.

• 4Q results: Domestic and overseas sales were both in line with guidance in 4Q.

North American patient monitor sales were especially strong, rising by double

digits in 4Q. However, this resulted in North American SG&A expenses

surpassing guidance in 4Q. Also, the 4Q gross margin missed guidance due

mainly to higher raw material costs and larger inventory write-downs.