Sumitomo Warehouse (9303) Needs to raise visibility of achieving 8% ROE via increased asset sales and growth investment

Research evidence excerpt

Sumitomo Warehouse (9303) Needs to raise visibility of achieving 8% ROE via increased asset sales and growth investment

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

09 June 2026

Sumitomo Warehouse (9303) Underweight

9303.T, 9303 JP

Needs to raise visibility of achieving 8% ROE via Price (08 Jun 26):¥3,940

increased asset sales and growth investment Price Target (Dec-26):¥3,600

We revise our earnings estimates, and maintain our price target of ¥3,600 and Japan Equity Research

Underweight rating. It looks as if Sumitomo Warehouse will struggle to achieve its

Transportation (Land, Sea, Air), OTC

FY2030 ROE target of 8%, based on our assumptions for profit growth and the & Small Companies, Real Estate &

scale of share buybacks. Furthermore, we expect a relatively low ROE trend REITs

compared to rival warehouse companies. We think the keys to ROE improvement AC Ryota Himeno

will be growth investments that generate high returns and the expansion of asset (81-3) 6736-8639

sales (the company plans to reduce strategic shareholdings by ¥60 billion over the ryota.himeno@jpmorgan.com

five years spanning FY2026-30). In the real estate segment, we think Sumitomo JPMorgan Securities Japan Co., Ltd.

Warehouse might sell non-core assets on a small scale, but depending on the scale,

these sales could be an upside factor for the share price.

Key Changes (FYE Mar)

• FY2026 estimates: We now expect FY2026 operating profit to grow 6.9% Prev Cur Δ Adj. EBIT - 27E (¥ mn) 13,100 12,200 -6.9%

YoY to ¥12.2 billion (guidance ¥12.2 billion; our previous forecast ¥13.1 Adj. EBIT - 28E (¥ mn) 13,600 13,000 -4.4%

billion). We forecast segment operating profit will rise ¥0.5 billion YoY to

¥14.0 billion in logistics (guidance: ¥14.0 billion; our previous forecast: ¥13.5 Style Exposure