SG Holdings (9143) Small meeting takeaways: Reassuringly good start in April

Research evidence excerpt

SG Holdings (9143) Small meeting takeaways: Reassuringly good start in April

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

27 May 2026

SG Holdings (9143) Overweight

9143.T, 9143 JP

Small meeting takeaways: Reassuringly good start in Price (27 May 26):¥1,439

April Price Target (Dec-26):¥1,850

We attended a small meeting led by CFO Takagaki on May 27. Topics included Japan Equity Research

rising fuel prices, firm current volume, and overseas cost reductions, but the main

Transportation (Land, Sea, Air), OTC

highlight was that profits were above plan in April, and we think the financial year & Small Companies, Real Estate &

has started strongly. Below we summarize the main points from management’s REITs

comments. AC Ryota Himeno

• Recent volume trends: Volume growth has been in the high single-digit (81-3)ryota.himeno@jpmorgan.com6736-8639

figures (%) in May. The average unit price has been lower than initially JPMorgan Securities Japan Co., Ltd.

expected because of growth in cross-border e-commerce, but performance is

solid in terms of volume and average unit prices combined.

• Cross-border e-commerce parcel handling: SG Holdings handles around

120 million parcels a year and it raised prices by a uniform ¥20 (around 5%)

in April. It says this will link cross-border e-commerce parcel handling volume

solidly to profits while preventing a repeat of last year’s productivity dip during

busy periods.

• Impact of rising fuel prices: Even if subsidies run out, the company can

absorb this by improving transportation efficiency, such as by reducing trunk

route services. Indeed, SG Holdings generated higher profits than planned in

April, despite rising diesel prices. It is also considering introducing a fuel

surcharge.